• NZD/USD opened the week on a firmer footing on Monday as markets reacted to the announcement of a U.S.–Iran peace deal agreement.
• U.S. and Iranian officials said on Sunday they have agreed on a framework for a deal to end their war, halt the U.S. blockade of Iran and reopen the Strait of Hormuz.
• The memorandum of understanding is scheduled to be officially signed on Friday in Switzerland.
• Iran stated that its commitments under the agreement would take effect on Friday, while also claiming that the U.S. blockade would be lifted on Monday. However, political messaging remained noisy, with both Donald Trump and Pakistan PM Shehbaz Sharif competing for visibility in the aftermath of the deal.
• New Zealand domestic data also added a supportive tone. May electronic card retail sales rose 1.7% m/m and 3.3% y/y, suggesting household spending is still holding up despite earlier macro headwinds.
• Immediate resistance is located at 0.5867(50%fib), any close above will push the pair towards 0.5962(38.2%fib).
• Support is seen at 0.5821(Daily high) and break below could take the pair towards 0.5773(61.8%fib).
Recommendation: Good to buy around 0.5820 with stop loss of 0.5760 and target price of 0.5880
