FxWirePro: NZD/USD under pressure amid US-Iran deterioration

• NZD/USD edged slightly lower on Wednesday after renewed geopolitical tensions weighed on risk sentiment, following U.S. military action against Iran.

• The U.S. military on Tuesday launched strikes against Iran after President Donald Trump said Tehran had shot down a U.S. Apache helicopter in the Strait of Hormuz.

• Escalating U.S.–Iran hostilities have reduced hopes for any near-term diplomatic breakthrough, keeping markets cautious and weighing on risk-sensitive currencies such as the New Zealand dollar..

• Attention will shift  to U.S. CPI data release on Wednesday, followed by U.S. PPI on Thursday, which are expected to influence USD direction and Fed rate expectations.

• Solid economic growth alongside persistently elevated inflation is likely to keep market expectations skewed toward the possibility of further U.S. rate hikes..

•  Immediate resistance is located at 0.5861(50%fib), any close above will push the pair towards 0.5873(SMA 20).

•  Support is seen at 0.5772(Lower BB) and break below could take the pair towards 0.5758(61.8%fib).

 Recommendation: Good to sell  around 0.5840 with stop loss of 0.5900 and target price of 0.5790