FxWirePro: EUR/NZD retreats after early gains amid market uncertainty

• EUR/NZD initially gained but gave up most of its early strength as markets digested France’s political turmoil and the RBNZ’s rate decision.

• In a surprise move, New Zealand’s central bank cut rates by 50 basis points on Wednesday, citing a weak economic outlook and keeping further easing in play.

•The RBNZ defied expectations, with 15 of 26 economists surveyed predicting a smaller 25 bps cut to the cash rate.

Sebastien Lecornu, France’s fifth prime minister in two years, resigned along with his government on Monday, just hours after unveiling the cabinet, marking the shortest-lived administration in modern French history

•French President Macron will name a new prime minister within 48 hours, his office said, as most lawmakers oppose a snap election amid the nation’s worst political crisis in a decade

• Immediate resistance is located at 2.0283 (Daily high), any close above will push the pair towards 2.0343 (23.6% fib)

• Immediate support is seen at 2.0072(SMA 20 ) and break below could take the pair towards 2.0000 (Psychological level).

Recommendation: Good to buy around 2.0080 , with stop loss of 1.9950 and target price of 2.0150