• The EUR/NZD slipped lower on Tuesday as market optimism improved following the temporary easing of trade tensions between the U.S. and China.
• The U.S. and China agreed on a 90-day trade truce, cutting tariffs and suspending other measures as they work toward a longer-term deal.
• The announcement of a 90-day suspension of additional tariffs between the two nations lifted investor appetite for riskier assets, benefiting currencies like the kiwi dollar .
•Technical signals are bearish as RSI is at 41, daily momentum studies 11, 14 and 21 DMAs are trending down.
• Immediate resistance is located at 1.9015 (50%fib), any close above will push the pair towards 1.9218(61.8%fib).
• Strong support is seen 1.8809(38.2%fib) and break below could take the pair towards 1.8729 (Lower BB)
Recommendation: Good to sell around 1.8850, with stop loss of 1.8940 and target price of 1.8760
