FxWirePro:NZD/USD lingers near strong support as risk aversion dominates early trade

• NZD/USD  eased on Monday    as escalating Middle East tensions dampen overall risk sentiment.

•The conflict intensified after Houthi involvement, triggering a sharp reaction across global markets.

•Adding to market unease, Donald Trump suggested the U.S. could target Iran’s oil infrastructure, including Kharg Island, a critical export hub. Such developments have reinforced concerns about supply disruptions and inflationary pressures.

• Markets have been shaken this month as the conflict effectively shut the Strait of Hormuz a key route for roughly a fifth of global oil and gas pushing Brent crude toward its biggest monthly gain and disrupting rate expectations

• Oil prices surged, while equity futures and Japan’s Nikkei 225 dropped steeply, reflecting rising investor caution.

•  Immediate resistance is located at 0.5777(March 27th high), any close above will push the pair towards 0.5817(50%fib).

•Support is seen at 0.5712(38.2%fib) and break below could take the pair towards 0.5692(Lower BB).

 Recommendation: Good to sell around 0.5750 with stop loss of 0.5830 and target price of 0.5670