FxWirePro: EUR/NZD edges lower, remains on back foot

• EUR/NZD edged lower on Monday as higher oil prices amid renewed U.S.-Iran tensions stoked inflation concerns, outweighing stronger-than-expected euro zone data.

• Brent crude hit a six-week high as regional supply was sharply curtailed, raising global inflation risks and expectations for tighter central bank policy.

• Euro zone investor morale rose to its strongest reading in more than four years in September, while second-quarter GDP expanded 0.6% from the previous quarter and 1.2% year on year, both above expectations.

•Traders are ‌nearly certain ⁠the European Central Bank will raise borrowing costs to 2.5% at its policy meeting week and deliver two additional quarter-point rate hikes by mid-2027.

• Immediate resistance is located at 1.9823(Higher BB), any close above will push the pair towards 1.9864(50%fib).

• Immediate support is seen at 1.9677(38.2% fib) and break below could take the pair towards 1.9650(SMA 20).

Recommendation: Good to sell  around 1.9780 with stop loss of 1.9850  and target price of 1.9700