FxWirePro: EUR/NZD recovers slightly but bears are not done yet

• EUR/NZD edged higher on Thursday amid a risk-off tone and rising expectations that the Reserve Bank of New Zealand will not hike interest rates in the near term.

• The Reserve Bank of New Zealand (RBNZ) recently left its Official Cash Rate at 2.25% and reiterated that monetary policy remains accommodative as inflation moves toward the midpoint of its target range.

• Hawkish expectations for the Reserve Bank of New Zealand have eased after Governor Anna Breman said in last week’s policy statement that the economy can continue growing without sparking fresh inflation pressures.

•  Money markets do not expect a rate hike before late in the year by  Reserve Bank of New Zealand (RBNZ).

 • The technical outlook remains bearish and points to eventual bigger gains, fourteen-day momentum is negative, reinforcing the scope for a bigger drop  

• Immediate resistance is located at 1.9865(38.2%fib), any close above will push the pair towards 1.9873(Higher BB)

• Support is seen at 1.9545(SMA 20) and break below could take the pair towards 1.9545(Lower BB)

Recommendation: Good to sell around 1.9740 with stop loss of 1.9800  and target price of 1.9620