• EUR/NZD strengthened on Monday as New Zealand dollar weakened as risk sentiment weakened on fresh US tariff threats that reignited global trade war fears..
•Over the weekend, Trump escalated trade tensions by proposing a 30% tariff on imports from Mexico and the European Union, both of which are currently in negotiations with the United States
• Trump signaled openness to talks, but the EU accused the U.S. of stalling on a trade deal and warned of retaliation if talks fail.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 65 bullish, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.9562 (38.2%fib), any close above will push the pair towards 1.9698(Higher BB).
• Strong support is seen at 1.9383 (SMA 20) and break below could take the pair towards 1.9212 (50% fib )
Recommendation: Good to buy around 1.9500, with stop loss of 1.9430 and target price of 1.9570
