• NZD/USD posted slight gains on Tuesday as traders balanced geopolitical risks with expectations for upcoming central bank actions.
•Investor hopes for a swift ceasefire were dashed after fresh Israeli air strikes on Iran, rattling markets, dragging equities lower, and driving oil prices higher.
• Investor sentiment continues to shift as developments in the Middle East swing between escalation and easing tensions.
• On the data front, New Zealand’s food prices rose 4.4% year-on-year in May, marking a 17-month high and casting doubt on hopes for further disinflation.
• Focus is now on the U.S. Federal Reserve, with its meeting set to begin today and a rate decision due Wednesday..
• Immediate resistance is located at 0.6095(23.6%fib), any close above will push the pair towards 0.6124(Higher BB).
• Support is seen at 0.6006(38.2%fib)and break below could take the pair towards 0.5932(50%fib).
Recommendation: Good to buy around 0.6050 with stop loss of 0.5930 and target price of 0.6120
