FxWirePro : EUR/NZD neutral in the near-term, scope for downward resumption

•  EUR/NZD moved modestly higher on Wednesday as investors assessed fresh U.S. PCE inflation figures alongside developments in geopolitical tensions.

• Core PCE inflation was broadly in line with market expectations, while the headline reading came in slightly above forecasts. The firmer inflation data pushed U.S. Treasury yields higher and reduced expectations for near-term Federal Reserve easing, lending support to the dollar..

• EUR/NZD showed a muted response to hawkish comments by ECB Executive Board member Isabel Schnabel.

•Money markets expect the ECB to raise its deposit rate to 2.5% next month, and assign more than a 25% chance of rates reaching 3.0% by mid-2027 as policymakers seek to prevent inflation pressures from becoming entrenched.

•Markets monitored developments in Iran-Oman negotiations on the Strait of Hormuz alongside a weaker-than-expected rise in U.S. crude stockpiles..

•   Immediate resistance is located at 1.9625(SMA 20), any close above will push the pair towards 1.9671(38.2% fib).

• Support is seen at 1.9493(Lower BB) and break below could take the pair towards 1.9453(23.6% fib )

Recommendation: Good to sell around 1.9630 with stop loss of 1.9700  and target price of 1.9520