• EUR/NZD initially gained but lost ground as concerns grew that U.S. President Donald Trump's tariffs on Canada, Mexico, and China could spark a global trade war.
• Trump said over the weekend that tariffs on the European Union would go ahead, but did not say when.
•EU leaders at an informal summit in Brussels on Monday said Europe would be prepared to fight back if the U.S. imposes tariffs, but also called for reason and negotiation.
• Analysts fear tariffs on Mexico could be more damaging for European carmakers and their suppliers than any direct tariffs on EU goods.
• The technical outlook remains bullish and points to eventual bigger gains, Fourteen-day momentum is positive, reinforcing the scope for a bigger gains
• Immediate resistance is located at 1.8396(38.2%fib), any close above will push the pair towards 1.8540(23.6%fib)
• Support is seen at 1.8327(Lower BB) and break below could take the pair towards 1.2286 (50%fib)
Recommendation: Good to buy around 1.8400 with stop loss of 1.8300 and target price of 1.8480
