• EUR/NZD rose higher on Thursday as subdued risk appetite, driven by escalating Middle East tensions, weighed on the risk-sensitive kiwi dollar.
• Fears of a broader military escalation in the Middle East deepened as Iran and Israel engaged in another round of retaliatory airstrikes, amplifying instability in an already volatile region.
• The renewed hostilities have heightened global concerns over the potential for wider regional involvement and disruption to energy markets and trade routes.
• The euro benefited , while risk-sensitive currencies like the Australian and New Zealand dollars were pressured.
• Immediate resistance is located at 1.93039(Higher BB), any close above will push the pair towards 1.9430(38.2% fib).
• Immediate support is seen at 1.9137(50% fib) and break below could take the pair towards 1.9028(Daily low).
Recommendation: Good to buy on dips around 1.9170, with stop loss of 1.9060 and target price of 1.9260
