FxWirePro: EUR/ NZD gains some ground but bearish outlook persists

• EUR/NZD strengthened  on Tuesday  as inflation fears from Iran war dampen risk appetite.

• Worries remain about a lasting inflationary shock from the Iran war, particularly from sharply higher energy prices.

•Global rate hike expectations have shifted higher, with traders increasingly pricing in a greater likelihood of Fed tightening as policymakers respond to renewed inflation pressures driven by sustained high energy prices.

• On the data front,New Zealand’s producer input prices climbed 1.4% in the first quarter, while output prices increased 0.8%. Meanwhile, electronic card retail sales dropped 1.3% in April, according to Statistics New Zealand data released Tuesday.

• Immediate resistance is located at  1. 9940 (Daily high ), any close above will push the pair towards 2.0076 (50%fib)

• Immediate support is seen at 1.9830 (38.2%fib) and break below could take the pair towards 1.9733(May 14th low).

 Recommendation: Good to sell around 2.0000 with stop loss of 2.0100 and target price of 1.9800