FxWirePro: EUR/NZD surges as risk currencies fall on Trump tariff threat

• EUR/NZD surged on Friday as risk-sensitive currencies such as the kiwi weakened following Trump’s threat of higher tariffs on China.

• Trump stated there was no need to meet China’s President Xi Jinping in South Korea in two weeks and added on Truth Social that the U.S. is considering a massive tariff hike on Chinese imports. 

• The action could trigger a renewed cycle of retaliatory trade measures that Washington and Beijing had suspended following intensive diplomatic efforts earlier this year.

• Earlier this week, China limited exports of essential rare earth materials and on Friday announced that U.S. ships would incur additional port fees beginning October 14.

• From a technical viewpoint, RSI  is strongly bullish at 67, daily momentum studies, 5, 10 and 14 daily  MAs all climb.

• Immediate resistance is located at 2.0349 (23.6% fib), any close above will push the pair towards 2.0434(Higher BB).

• Immediate support is seen at 2.0104 (SMA 20) and break below could take the pair towards 2.0045(38.2% fib).

Recommendation: Good to buy on dips around 2.0300 with stop loss of 2.0220  and target price of 2.0390