•EUR/NZD declined on Friday as markets reacted to reports of former U.S. President Trump demanding steeper tariffs on EU imports, raising concerns over escalating trade tensions.
• President Trump wants any trade deal with the EU to include at least a 15% to 20% tariff, according to the Financial Times. Even if the two sides strike a deal, the U.S. may still apply tariffs of more than 10%.
• According to sources cited in the report, Trump remains unswayed by the EU’s recent proposal to cut auto tariffs and plans to proceed with a 25% levy on the sector.
•Technical highlight upside risks for EUR/NZD , with momentum studies, 5, 10 and 11SMAs tracking north.
• Immediate resistance is located at 1.9640 (38.2% fib), any close above will push the pair towards 1.9678 (Higher BB).
• Support is seen at 1.9439 (50% fib) and break below could take the pair towards 1.9344 (July 11th low )
Recommendation: Good to buy around 1.9480, with stop loss of 1.9400 and target price of 1.9570
