• EUR/ NZD edged higher as investors adopted a cautious trading approach ahead of the Federal Reserve’s latest interest rate decision.
• The U.S. Federal Reserve will also commence its two-day meeting, with a decision scheduled on Wednesday, that could set the tone for global markets this week.
• Meanwhile, ECB Governing Council member Martin Kocher said the central bank is “in a good place” for now, adding that the ECB remains comfortable as long as deviations from the 2% inflation target remain modest.
• Markets broadly expect the ECB to stick to a wait-and-see approach and keep interest rates on hold for an extended period. .
• Immediate resistance is located at 2.0029(50% fib), any close above will push the pair towards 2.0149 (SMA 20).
• Immediate support is seen at 1.9820(Lower BB) and break below could take the pair towards 1.9738(61.8% fib).
• Recommendation: Good to sell around 1.9940 with stop loss of 2.0080 and target price of 1.9760
