FxWirePro:EUR/NZD sustains gains as uptrend remains strong

• EUR/NZD strengthened   on Monday  as kiwi dollar weakened ahead of RBNZ rate decision.

• The Reserve Bank of New Zealand is expected to keep interest rates on hold at its July 9 meeting,  , with the median forecast now projecting just one more 25 basis point cut this year—down from two in the May survey.

•Since August, the central bank has slashed rates by a total of 225 basis points, easing policy after a historically sharp tightening cycle aimed at curbing inflation;

•Inflation eased to 2.5% in Q1, within the RBNZ’s 1%–3% target, but rising uncertainty over future price pressures is likely to keep the central bank on hold until Q2 data is released on July 21.

•Technicals are favoring bullish sentiment as RSI is at  65 and the pair is trading above   5,9 &11-DMAs.

• Immediate resistance is located at 1.9664 (38.2%fib), any close above will push the pair towards 1.9778 (April 11th high).

• Immediate support is seen at 1.9417 (38.2%fib) and break below could take the pair towards 1.9303(SMA 20).

Recommendation: Good to buy round 1.9500, with stop loss of 1.9400 and target price of 1.9580