• NZD/USD edged higher on Wednesday but upside remained restrained as market sentiment stayed fragile due to the Middle East conflict.
•Concerns over escalating hostilities in the Middle East remained front and centre in markets on Wednesday.
• Investors have grown increasingly nervous over the possibility of more direct U.S. military involvement as the Israel-Iran air war entered a sixth day.
• Looking ahead, New Zealand is set to release its first-quarter GDP data on Thursday, with forecasts pointing to a solid 0.7% quarterly growth as the economy gradually recovers from a policy-driven slowdown.
• At GMT 06:31, the New Zealand dollar was up 0.36% to 0.6436 against the dollar.
• Immediate resistance is located at 0.6091(23.6%fib), any close above will push the pair towards 0.6120(Higher BB).
• Support is seen at 0.6002 (38.2%fib) and break below could take the pair towards 0.5929(50%fib).
Recommendation: Good to buy around 0.5980 with stop loss of 0.5900 and target price of 0.6080
