• EUR/ NZD initially gained but gave up ground on Friday as traders grew wary amid rising uncertainty around global growth and inflation.
• Investors grew increasingly concerned that the ongoing Middle East conflict could keep energy supplies disrupted for longer, driving up costs and fueling inflation.
• German business sentiment deteriorated more than expected in April as the Iran war threatens the recovery of Europe’s biggest economy.
• The European Central Bank meets next week with markets pricing in a 76% chance that policymakers will leave rates unchanged, However, traders still expect rate hikes later this year if energy disruptions persist.
• Immediate resistance is located at 1.9988(50%fib), any close above will push the pair towards 2.0135(April13th high).
• Immediate support is seen at 1.9805 (50%fib) and break below could take the pair towards 1.9774(Lower BB).
Recommendation: Good to sell around 1.9950 with stop loss of 2.0100 and target price of 1.9850
