• EUR/USD slipped lower on Monday as concerns about the growth impact from an extended U.S.-Israeli war with Iran weighed on euro
• Iran rejected U.S. ceasefire proposals Monday as “unrealistic, illogical and excessive,” fired more missiles at Israel, and saw oil prices rise after Yemen’s Houthis joined the conflict.
• Rising oil prices have sparked inflation fears. The longer the conflict continues, the more higher energy costs will hurt consumer finances and economic growth..
• On the data front,German inflation accelerated in March, driven by surging energy prices amid the Iran war, with economists expecting further rises ahead.
•EU-harmonised inflation hit 2.8% year-on-year in March, according to preliminary data Monday—matching analyst forecasts and up from 2.0% in February..
• Immediate resistance is located at 1.1521( Daily high), any close above will push the pair towards 1.1578 (38.2% fib)
• Strong support is seen at 1.1417(23.6% fib) and break below could take the pair towards 1.1371 (Lower BB).
Recommendation: Good to sell around 1.1480 with stop loss of 1.1570 and target price of 1.1400
