• EUR/ NZD stayed range-bound as traders avoid exposure amid Middle East uncertainty ahead of next week’s policy meetings.
• Tensions over the U.S.-Israeli war with Iran and risks to Strait of Hormuz shipping eclipsed the IEA’s announcement of a record 400 million-barrel oil release.
• Oil rose 4% after ship attacks in the Strait of Hormuz deepened supply fears, with analysts saying the International Energy Agency’s reserve release may not ease concerns..
• Iran said the world should be prepared for oil to hit $200 a barrel. Its forces attacked merchant ships and fired at Israel and other targets across the Middle East.
•Meanwhile, U.S. CPI rose 0.3% in February, matching forecasts and up from 0.2% in January, while the annual rate held at 2.4%. Focus now turns to January’s delayed PCE price index due Friday.
• Immediate resistance is located at 1.9676(SMA 20), any close above will push the pair towards 1.9754(38.2%fib).
• Immediate support is seen at 1.9524(23.6%fib) and break below could take the pair towards 1.9482(Lower BB).
Recommendation: Good to sell around 1.9600 with stop loss of 1.9660 and target price of 1.9530
