• EUR/NZD strengthened on Tuesday as the pair attracted buyers after reports showed that German political parties had agreed to form a coalition.
• Germany's conservatives, led by chancellor-in-waiting Friedrich Merz, reached an agreement with the center-left Social Democrats (SPD) on Tuesday to form a new government..
• Merz's Christian Democrats (CDU), together with their Bavarian CSU sister party, will lead the new administration, with the center-left Social Democrats (SPD) serving as the junior partner.
•Investors have been closely monitoring the trade disputes triggered by President Donald Trump's extensive tariffs, which have caused significant market volatility over the past three days.
• European Commission President Ursula von der Leyen stated on Monday that the European Union is open to negotiations with the U.S., while also indicating its readiness to implement countermeasures.
• Immediate resistance is located at 2.0000 (Psycholgical level any close above will push the pair towards 2.0094(23.6%fib).
• Strong support is seen at 1.9752(38.2%fib) and break below could take the pair towards 1.9487(50% fib )
Recommendation: Good to buy around 1.9920, with stop loss of 1.9850 and target price of 2.0000
