• EUR/NZD traded in tight range on Wednesday as investors also look for fresh cues about progress in trade talks between the Eurozone and the US.
• The European Central Bank (ECB) stated that the strong credit and stock markets seem "out of sync" with the current global environment marked by increased geopolitical tensions and trade uncertainties.
• The upcoming release of Eurozone HCOB PMI data on Thursday will be closely scrutinized for indications of underlying economic momentum across key sectors.
• Technical signals are bearish as RSI is heading down at 52, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.9130(38.2%fib), any close above will push the pair towards 1.9179(Higher BB)
• Strong support is seen at 1.8940 (50%fib ) and break below could take the pair towards 1.8875(Lower BB).
Recommendation: Good to buy around 1.9040, with stop loss of 1.8900 and target price of 1.9130.
