•EUR/NZD dipped on Wednesday as euro continued weakned as a lopsided U.S.-EU trade deal revived concerns about the Eurozone economic outlook.
• The 15% tariff on most EU goods is half the initially threatened rate, yet remains well above pre-2025 levels. Uncertainty lingers, particularly regarding duties on pharmaceuticals—a major European export..
• The deal might spare Europe a recession but won't end its stagnation, with projected growth of 0.5%–0.9%, well below the ECB's 1% forecast under normal trade conditions.
• On the data front, GDP in the 20 nations sharing the euro currency expanded by 0.1% on the quarter against expectations for an unchanged reading.
•Meanwhile, Spain grew 0.7% in the quarter, France rose 0.3%, but both Germany and Italy slipped by 0.1%, Eurostat data showed.
• Immediate resistance is located at 1.9609(Jul 23rd high), any close above will push the pair towards 1.9695 (38.2% fib).
• Support is seen at 1.9322(50% fib) and break below could take the pair towards 1.9286 (Lower BB )
Recommendation: Good to sell around 1.9380, with stop loss of 1.9460 and target price of 1.9300
