FxWirePro:EUR/NZD drifts lower , could be on verge of a bigger drop

• EUR/NZD fell on Wednesday as euro crosses faced pressure following the release of U.S. inflation data.

• European Central Bank vice president Luis de Guindos said the bank will continue cutting rates if inflation eases as expected but it needs to be prudent in the face of risks from trade tensions to debt worries.

• On the data front, consumer prices in France increased by 1.8% year-on-year, while Spain's EU-harmonized annual inflation rate climbed to 2.8%.

•A separate reading showed the German economy contracted for the second consecutive year in 2024.

• Immediate resistance is located at 1.8405(38.2%fib), any close above will push the pair towards 1.8480(Jan 10th high).

• Immediate support is seen at 1.8282(50%fib) and break below could take the pair towards 1.8151(61.8% fib).

Recommendation: Good to sell round 1.8350, with stop loss of 1.8460 and target price of 1.8250