• EUR/NZD slipped lower as the pair attracted sellers after the European Central Bank left rates on hold.
• The European Central Bank kept interest rates unchanged on Thursday as expected and upheld a positive outlook on growth and inflation, reducing prospects for further cuts in borrowing costs
• The ECB halved its key rate by June but has kept it at 2% since, saying the euro zone economy is in a “good place,” while keeping further easing on the table.
• The ECB now projects inflation at 1.9% in 2027, down from June’s 2.0% forecast, while core inflation is expected at 1.8%, both remaining under the central bank’s 2% target.
• Technicals are favouring bearish sentiment as RSI is at 41 and the pair is trading below 5,10 & 11-DMAs.
• Immediate resistance is located at 1.9710 (38.2% fib), any close above will push the pair towards 1.9831(SMA 20).
• Strong support is seen at 1.9625 (Lower BB) and break below could take the pair towards 1.7705(38.2% fib).
Recommendation: Good to sell on dips around 1.9650, with stop loss of 1.9730 and target price of 1.9590
