• EUR/NZD edged higher but gains were limited as fears of U.S. protectionism and German political turmoil weighed on the euro.
• Trump's proposed 20% tariffs on Europe, first signaled during his campaign, could potentially cause Germany's export-driven economy to contract by up to 1.5% in 2027 and 2028.
• Germany is facing months of uncertainty after its three-party coalition government collapsed amid ongoing disputes, the latest of which centered on how to revive its struggling economy, the largest in Europe.
• Immediate resistance is located at 1.7994(50%fib ), any close above will push the pair towards 1.8075(SMA 5).
• Strong support is seen at 1.7892(61.8%fib) and break below could take the pair towards 1.7835(Oct 17th low).
Recommendation: Good to sell on rallies around 1.7980 with stop loss of 1.8050 and target price of 1.7880
