Prices in the New Zealand Dollar (NZD), Euro (EUR) cross reached 0.5530 (1.8080) resistance Monday before easing lower to 0.5510 (1.8155) early Tuesday. This week’s ECB rate decision is hanging in the balance with no clear indication the central bank will hike or not. Chances look to be around 40% for a hike from 4.25%. Certainly, if we see no hike eventuate attention will divert to rhetoric round policy agenda looking forward. We suspect a hike is still very much on the cards this year depending on how inflation rolls out. The enormous bear trend in play from December’s 0.6115 (1.6350) is still very much in play but with the pair showing prices at the bottom of the channel- these levels could represent decent buying of EUR.
Current Level: 0.5501
Support: 0.5410
Resistance: 0.5650
Last week’s range: 0.5459 – 0.5525