• EUR/ NZD edged higher but gains were limited as markets reassessed the magnitude of the energy supply shock from the Persian Gulf.
•Oil prices surged by as much as 4% earlier on Tuesday before trimming those gains later in the session, as uncertainty persisted over the formation and effectiveness of a U.S.-led coalition aimed at safeguarding shipping routes through the Strait of Hormuz.
•Investors' focus this week will be on interest rate decisions in the UK, the U.S., and Europe and comments from policymakers on how they intend to navigate the potential energy-driven inflationary pressures.
• Meanwhile, German investor morale fell much more sharply than expected in March, marking its steepest decline since the onset of the Russia–Ukraine war in February 2022.
• Germany’s ZEW Indicator of Economic Sentiment, which measures investor confidence in Europe’s largest economy, deteriorated sharply in March, falling from 58.3 in February to -0.5.
• Immediate resistance is located at 1.9765(38.2%fib), any close above will push the pair towards 1.9831(Higher BB).
• Immediate support is seen at 1.9694(SMA 20) and break below could take the pair towards 1.9548(23.6%fib).
Recommendation: Good to sell around 1.9700 with stop loss of 1.9770 and target price of 1.9620
