• EUR/NZD erased earlier gains on Wednesday as market digested German inflation data and awaited Russia-US peace talks.
• Germany’s Consumer Price Index (CPI) remained stable at 2% year-on-year in July, in line with preliminary data, according to figures released on Wednesday.
• The CPI was 2% in June, marking its lowest level since last October, according to Federal Statistical Office (Destatis) data.
• Meanwhile, markets focused on a virtual meeting on Wednesday between European and Ukrainian leaders and President Trump, ahead of his summit with Russian President Vladimir Putin in Alaska on Friday.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 57 bullish, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.9655 (38.2%fib), any close above will push the pair towards 1.9734(Higher BB)
• Support is seen at 1.9530(20 SMA) and break below could take the pair towards 1.9391 (50%fib).
Recommendation: Good to buy around around 1.9500 with stop loss of 1.9430 and target price of 1.9600
