FxWirePro:EUR/NZD gains slightly as ranges remain tight ahead U.S. inflation report

• EUR/NZD   edged higher as investors remain cautious ahead of Wednesday’s U.S. inflation report, which is expected to provide fresh clues on the Federal Reserve’s interest-rate outlook..

• U.S. July CPI is the key event later Wednesday, with the Reuters poll forecasting headline inflation at 3.4% year-on-year and core inflation at 2.5% year-on-year.

• A hotter-than-expected reading could strengthen the U.S. dollar by reducing expectations for near-term Fed easing.

   • Attention will also turn to the RBNZ’s Q3 expectations survey on Thursday, which will be closely scrutinized for signals about inflation expectations, economic growth and future monetary policy..

• The survey could influence expectations for the RBNZ’s September meeting and therefore become an important near-term catalyst for the Kiwi.

• Immediate resistance is located at 1.9662(38.2% fib), any close above will push the pair towards 1.9763 (Higher BB).

• Immediate support is seen at 1.9495(Lower BB) and break below could take the pair towards 1.9465 (23.5%fib).

Recommendation: Good to sell  around 1.9670  with stop loss of 1.9750  and target price of 1.9600