• EUR/NZD dipped on Tuesday as improved market sentiment supported risk-sensitive currencies.
· Comments from Donald Trump that the conflict involving Iran could end soon helped lift global risk appetite, encouraging investors to move back into higher‑yielding currencies like the kiwi dollar.
·The recent spike in oil prices after the U.S.-Israeli strikes on Iran has revived global inflation fears, putting central banks in a difficult position, especially in Europe where dependence on energy imports leaves growth vulnerable.
·Three ECB policymakers said the bank should take its time to reassess policy and maintain its current course, though investors now expect at least one rate hike by year-end.
• Market attention now turns to the U.S. February Consumer Price Index (CPI) data due on Wednesday. Economists expect core CPI to rise 0.2% month-on-month and 2.5% year-on-year.
• Immediate resistance is located at 1.9787(38.2%fib), any close above will push the pair towards 1.9818(Higher BB).
• Immediate support is seen at 1.9552(23.6%fib) and break below could take the pair towards 1.9502(Lower BB).
Recommendation: Good to sell around 1.9600 with stop loss of 1.9680 and target price of 1.9500
