• EUR/NZD initially gained on Tuesday but gave up some ground as investors awaited New Zealand's central bank interest rate decision on Wednesday.
• New Zealand's central bank is set to cut interest rates by 50 basis points to 3.75% on Wednesday, with economists forecasting an additional 75 bps of easing this year.
• At its November meeting, RBNZ Governor Adrian Orr indicated a 50 bps cut this month, and little has changed to alter the expectation that the central bank will proceed with it.
• The technical outlook remains berish and points to eventual bigger gains, fourteen-day momentum is negitive, reinforcing the scope for a bigger drop
• Immediate resistance is located at 1.8395(38.2fib), any close above will push the pair towards 1.8458(Feb 14th high)
• Support is seen at 1.8250(50%fib) and break below could take the pair towards 1.8219(Lower BB)
Recommendation: Good to sell around 1.8360 with stop loss of 1.8200 and target price of 1.8280
