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FxWirePro: EUR/NZD outlook weaker on renewed downside pressure

• EUR/ NZD dipped on Monday as the pair attracted selling interest  ahead of  this week’s ECB meeting.

• Investors largely expect the ECB to keep interest rates unchanged and avoid providing guidance on future policy moves. 

• Money markets priced the ECB deposit rate at 2.66% by December and 2.73% by February 2027, up from the current 2.25%, while fully pricing in a rate hike for September.

• On the geopolitical front, U.S. strikes on Iran entered a ninth straight day on Monday and risks to shipping through the Strait of Hormuz mounted after reports of tankers being immobilised

• Immediate resistance is located at 1.9570 (Daily high), any close above will push the pair towards 1.9672(38.2%fib)

• Support is seen at 1.9470(23.6%fib)and break below could take the pair towards 1.9432(Lower BB)

Recommendation: Good to sell around 1.9520 , with stop loss of 1.9580  and target price of 1.9450

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