• EUR/NZD edged higher as ongoing tensions in the Middle East kept investors cautious.
• Markets remained cautious early in the week after Iran’s Fars agency reported missiles hit a U.S. warship near Jask in the Gulf of Oman, prompting it to turn back after ignoring warnings.
• The U.S. military said two U.S. Navy guided-missile destroyers had entered the Gulf to break an Iranian blockade and that two U.S. merchant ships had transited the Strait of Hormuz..
• On the data front, the euro zone manufacturing sector continued to expand in April 2026, with the PMI steady at 52.2.
• Separate data showed the Sentix index of euro zone investor confidence improved to -16.4 in May from -19.2, beating forecasts of -21.0.
• Immediate resistance is located at 1.9921(SMA 20), any close above will push the pair towards 1.9956(SMA20).
• Immediate support is seen at 1.9821(Lower BB) and break below could take the pair towards 1.9751(38.2%fib).
Recommendation: Good to sell around 1.9950 with stop loss of 2.0100 and target price of 1.9800
