• NZD/USD edged lower on Monday as escalating geopolitical tensions weighed on global risk sentiment.
• The U.S. captured Maduro in Caracas over the weekend. Trump stated Washington would take control of Venezuela, with the oil embargo remaining fully in effect.
• Despite U.S. actions against President Maduro, Venezuela’s government continues to hold power, adding uncertainty to global markets, particularly in commodities like oil, where Venezuela is a key exporter.
• Investors are cautious about escalating geopolitical or economic risks, prompting a shift into safe-haven assets such as gold.
•Risk sentiment is sensitive to such developments, often pressuring “risk” currencies like the kiwi dollar.
•Immediate resistance is located at 0.5796(SMA 20), any close above will push the pair towards 0.5823(50%fib).
•Support is seen at 0.5720 (Lower BB) and break below could take the pair towards 0.5700(61.8%fib).
Recommendation: Good to sell around 0.5760 with stop loss of 0.5810 and target price of 0.5700
