• NZD/USD initially dipped but recovered ground on Wednesday as the growing conflict in the Middle East kept investors cautious.
• Ongoing conflicts in the Middle East have caused increasing casualties, major destruction, and a sharp rise in energy price.
• New Zealand’s currency has weakened due to its strong reliance on imported oil, which exposes it to higher energy prices.
• On monetary policy, the RBNZ left its cash rate unchanged last month, highlighting the importance of keeping policy accommodative.
• Immediate resistance is located at 0.5921(38.2%fib), any close above will push the pair towards 0.5955(March 3rd high).
•Support is seen at 0.5861(Daily low) and break below could take the pair towards 0.5844(61.8%fib).
Recommendation: Good to sell around 0.5910 with stop loss of 0.5980 and target price of 0.5860
