FxWirePro : EUR/NZD slips amid middle east tensions and dovish ECB outlook

• EUR/NZD slipped lower on Wednesday as tensions in the Middle East adding to market uncertainty.

• Hostilities between Iran and Israel entered a sixth day, fueling fears of deeper U.S. involvement after President Donald Trump called for Iran’s “unconditional surrender.

•  The European Central Bank will maintain a flexible policy stance amid rising risks from the Israel-Iran conflict and U.S. trade policy, a top official said Wednesday.

• ECB’s Panetta says the ECB will stay flexible on policy amid Israel–Iran conflict and U.S. trade risks. He expects inflation to stay below 2% for some time given the “persistently weak” economy.

•Meanwhile, Eurozone inflation was confirmed at 1.9% year-on-year in May 2025, down from 2.2% in April, falling below the ECB’s 2.0% target for the first time since September 2024.

•Immediate resistance lies at 1.9168(Higher BB  ), a close above could push the pair toward 1.9208(50% fib).

•Support is at 1.8976(61.8% fib), and a break below this may lead the pair down to 1.8861 (Lower BB).

Recommendation: buy around 1.9020, with a stop loss at 1.8900 and a target price of 1.9120.