FxWirePro: EUR/NZD gains some ground after RBNZ rate decision

• EUR/NZD rose higher on Wednesday   as New Zealand dollar came under after Reserve Bank of New Zealand (RBNZ) raised its official cash rate.

• New Zealand's central bank raised its official cash rate by 25 basis points to 2.75 percent on Wednesday and flagged further tightening was likely, but emphasised this would be gradual and saw significant downside risks to the economy.

• The move was widely expected, with 27 of 31 economists polled by Reuters forecasting that the Reserve Bank of New Zealand (RBNZ) would raise its cash rate by 25 basis points.

•Wednesday's 25-basis-point increase leaves the cash rate well below its 5.50% peak reached in August 2024. The central bank subsequently embarked on an aggressive easing cycle as economic growth weakened and inflation pressures subsided.

 • Immediate resistance is located at 1.9888(50%fib), any close above will push the pair towards 1.20007 (50%fib).

• Immediate support is seen at 1.9695(38.2% fib) and break below could take the pair towards 1.9632(Lower BB).

Recommendation: Good to sell  around 1.9820 with stop loss of 1.9880  and target price of 1.9750