• EUR/NZD strengthened on Tuesday as markets became risk averse in the face of escalating Middle East tensions..
• Reports suggesting that the United States has indications of an imminent Iranian ballistic missile attack on Israel added a geopolitical dimension to the market, pressuring risk-sensitive assets.
• On the data front , Inflation in the 20 eurozone countries eased to 1.8% in September, down from 2.2% in August, according to Eurostat data released on Tuesday.
• Technical signals are strongly bearish as RSI is at 36, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.7628 (38.2% fib), any close above will push the pair towards 1.7738(50% fib).
• Immediate support is seen at 1.7513(23.6%fib) and break below could take the pair towards 1.7460(Lower BB).
Recommendation: Good to sell around 1.7630, with stop loss of 1.7730 and target price of 1.7650
