• EUR/NZD eased slightly on Tuesday as the Iran-Israel truce boosts appetite for risk sensitive New Zealand dollar.
• The truce’s announcement significantly dented safe-haven demand for the U.S. dollar, as investors grew more willing to take on risk and chase higher returns elsewhere.
• On the data front, German business morale improved more than expected in June, signaling a possible turning point for Europe’s largest economy amid lower borrowing costs and supportive fiscal measures.
•The Ifo Institute reported that its business climate index rose to 88.4 in June from 87.5 in May, beating the 88.2 forecast in a Reuters poll, with the services sector leading the gains
• Technical signals are bullish as RSI is at 62, daily momentum studies 5, 9 and 10 DMAs are trending up.
• Immediate resistance is located at 1.9380 ( 38.2%fib), any close above will push the pair towards 1.9453 (Higher BB)
• Strong support is seen at 1.9288 (50%fib) and break below could take the pair towards 1.9193(50%fib).
Recommendation: Good to buy around 1.9300, with stop loss of 1.9220 and target price of 1.9400
