• EUR/NZD initially gained but gave up ground as indecision emerged after Donald Trump stepped back from plans to target Iran’s power and energy infrastructure.
• Trump said on Monday that Washington and Tehran have held constructive talks and that he had backed down from targeting Iran's power network
• The comments came hours ahead of a deadline that threatened further escalation in the conflict, now in its fourth week.
• Meanwhile, the ECB kept rates steady on Thursday but indicated that future hikes may be possible in the coming months.
• Traders are currently pricing in two 25-basis-point rate hikes by year-end, a far cry from the pre-war expectations of unchanged rates throughout the year.
• Immediate resistance is located at 1.9848 (38.2%fib), any close above will push the pair towards 1.9900(Psychological level).
• Immediate support is seen at 1.9701 (SMA 20) and break below could take the pair towards 1.9545(23.6%fib).
Recommendation: Good to sell around 1.9850 with stop loss of 1.9950 and target price of 1.9760
