• 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
