• EUR/NZD slipped lower on Monday as risk appetite improved following Iran’s proposal to reopen the Strait of Hormuz boosting kiwi dollar.
• Iran has put forward a new proposal to the U.S. via Pakistani mediators to reopen the Strait of Hormuz and end the war, while deferring nuclear negotiations to a later stage.
• Markets are responding positively to signs of easing supply disruptions. Reopening the key oil transit route has historically supported risk assets and weighed on safe havens by easing energy shock concerns.
• Ongoing backchannel diplomacy suggests that while progress is tentative, dialogue remains active, helping to stabilize sentiment even in the absence of a formal agreement.
• Immediate resistance is located at 1.9967(Daily high), any close above will push the pair towards 2.0000(Psychological level).
• Immediate support is seen at 1.9801 (SMA 20) and break below could take the pair towards 1.9705 (Lower BB).
Recommendation: Good to sell around 1.9850 with stop loss of 1.9950 and target price of 1.9770
