FxWirePro:EUR/NZD downside pressure builds, key support level in focus

•  EUR/ NZD dipped  on Friday as renewed U.S. strikes on Iran heightened geopolitical tensions

• The U.S. launched strikes on bridges in Iran on Friday, prompting Tehran to hit a power and desalination facility in Kuwait as the conflict widened to include key infrastructure targets.

• Washington and Tehran have steadily escalated tensions since their ceasefire collapsed last week, raising fears of a return to full-scale war.

• The ECB is widely expected to leave rates unchanged on July 23 but raise borrowing costs again in September, with rising energy prices threatening to intensify inflationary pressures.

• The European Central Bank is viewed as more hawkish than the Federal Reserve, with markets pricing in two more rate hikes through 2027 and some economists not ruling out an increase as early as next week..

• Immediate resistance is located at 1.9677 (38.2% fib), any close above will push the pair towards 1.9852(50% fib).

• Immediate support is seen at 1.9467(23.6% fib) and break below could take the pair towards 1.9359(Lower BB).

Recommendation: Good to sell  round 1.9580, with stop loss of 1.9650 and target price of 1.9520