• EUR/NZD edged higher as investors focused on new developments in the Middle East and a high-stakes U.S.-China summit.
• China’s Xi Jinping told U.S. President Donald Trump that trade talks were progressing, but warned that tensions over Taiwan could damage relations and potentially lead to conflict..
• The Trump-Xi summit is aimed at addressing key issues including trade, U.S. arms sales to Taiwan, and the reopening of the Strait of Hormuz.
•Oil prices edged lower as Trump discussed the Iran war with China's Xi, even as new attacks on vessels near the Strait of Hormuz served as a reminder that peace talks have stalled.
• On the economic front, US retail sales matched expectations, though gains were largely driven by higher gasoline prices linked to the Iran war, which also contributed to the biggest rise in import prices since October 2022.
• Immediate resistance is located at 1.9802(38.2%fib), any close above will push the pair towards 1.9856 (SMA 20).
• Immediate support is seen at 1.9656 (Lower BB) and break below could take the pair towards 1.9522(23.6%fib).
Recommendation: Good to sell around 1.9780 with stop loss of 1.9880 and target price of 1.9700
