• EUR/NZD strengthened on Tuesday as kiwi dollar weakened ahead of the Reserve Bank’s policy decision this week.
• The RBNZ is widely forecast to cut the Official Cash Rate, which stands at 3%, to aid the weakening economic outlook.
•Markets are split on whether the RBNZ will cut rates by 25 bps or deliver a sharper 50 bps cut, marking the eighth cut since August 2024.
• Technical favours bullish sentiment, RSI is rising & pair trades above 14 and 21-DMAs.
• Immediate resistance is located at 2.0170 (Daily high), any close above will push the pair towards 2.0310 (23.6% fib)
• Immediate support is seen at 2.0028(SMA 20 ) and break below could take the pair towards 1.9992 (38.2%fib).
Recommendation: Good to buy around 2.0020 , with stop loss of 1.9900 and target price of 2.0120
