• EUR/NZD retreated from daily high on Thursday as currency traders took some risk off the table in the wake of hefty tariffs announced by U.S. President Donald Trump.
• On Wednesday, Trump imposed a 10% tariff on most U.S. imports, raising tariffs on the EU to 20% and China to 54%, with both countries promising retaliation.
•European Commission President Ursula von der Leyen stated that the EU was ready to implement countermeasures if negotiations with Washington did not succeed.
• Meanwhile, Traders ramped up bets of ECB rate cuts despite the trade war threatening to stoke inflation, on hopes policymakers would take steps to stimulate growth.
• Immediate resistance is located at 1.9090 (38.2%fib), any close above will push the pair towards 1.9209(Higher BB).
• Strong support is seen 1.8876(50%fib) and break below could take the pair towards 1.8664(61.8%fib)
Recommendation: Good to buy around 1.9060 with stop loss of 1.8900 and target price of 1.9160
