• EUR/NZD held firm on Wednesday as investors assesed U.S. and Iran conflict and looked ahead to the European Central Bank's upcoming monetary policy decision.
• U.S. President Donald Trump said on Wednesday that Iran had taken too long to negotiate and would “have to pay the price,” while Tehran said it would reassess diplomatic engagement with Washington.
•Attention turns to the ECB’s two-day policy meeting, where it is widely expected to raise rates by 25 bps to curb inflation driven by higher energy costs.
•Meanwhile, U.S. consumer inflation rose in May at its fastest pace in three years, matching expectations and reinforcing bets that the Federal Reserve may keep rates unchanged into 2027.
• Immediate resistance is located at 1. 9921(50%fib), any close above will push the pair towards 2. 0027(higher BB)
• Immediate support is seen at 1.9788 (SMA 20) and break below could take the pair towards 1.9758(SMA 20).
Recommendation: Good to buy around 1.9910 with stop loss of 1.9850 and target price of 1.9970
