• EUR/NZD traded in tight range on Wednesday as investors monitored U.S. trade negotiations ahead of President Donald Trump's July tariff deadline.
• Investors stayed cautious after Trump ruled out extending the trade deal deadline. Talks with Japan remained uncertain, while a deal was expected with India and finalized with Vietnam.
• Investors also focused on Trump’s $3.3 trillion tax and spending bill, which aims to cut taxes and social programs while significantly increasing the national debt as it moves through Congress..
• House Republicans scheduled a procedural vote on the bill, which could indicate whether they have enough support to pass it through Congress.
• Technicals are favouring bullish sentiment as RSI is at 61 and the pair is trading above 5, 11 &14 DMA’s.
• Immediate resistance is located at 1.9447(38.2% fib), any close above will push the pair towards 1.9598(Higher BB).
• Immediate support is seen at 1.9209(20 SMA) and break below could take the pair towards 1.9147(50% fib).
Recommendation: Good to buy on dips around 1.9350 with stop loss of 1.9250 and target price of 1.9450
