FxWirePro:EUR/NZD gains some ground but outlook is bearish

• EUR/NZD gained some ground on Monday as euro supported by short-covering and expectations that the European Central Bank will raise interest rates next week.

• German inflation rose in August as higher energy prices linked to the Iran conflict pushed up costs, but the increase was below expectations. Core inflation remained stable, easing concerns that war-related price pressures could spread across the broader economy..

• Inflation increased to 2.9% year-on-year in August from 2.8% in July, according to preliminary data released by Germany’s federal statistics office on Monday.

• Analysts polled by Reuters had forecast the EU-harmonised consumer price index to come ​in at 3.1% in August.

• Immediate resistance is located at 1.9668 (38.2% fib), any close above will push the pair towards 1.9737 (Higher BB).

• Immediate support is seen at 1.9516(Lower BB) and break below could take the pair towards 1.9484(38.2%fib).

Recommendation: Good to sell  round 1.9640, with stop loss of 1.9700 and target price of 1.9550