FxWirePro: EUR/ NZD dips towards 1.9700 level ,scope for further downside

• EUR/ NZD  dipped  towards 1.9700 level  as uncertainty over  U.S.-Iran peace deal  weighed on risk sentiment.

• Talks over Iran faltered as Trump warned the ceasefire was near collapse following Tehran’s rejection of a U.S. proposal.

•The U.S. war with Iran has pushed oil prices higher, raising fuel costs and raising expectations of broader inflation effects ahead.

• On the data front, U.S. consumer prices rose for a second straight month in April, pushing annual inflation to its highest level in nearly three years and reinforcing expectations that the Federal Reserve will keep interest rates steady for now.

•Focus is also on the Producer Price Index scheduled for release on Wednesday and a meeting between Trump ​and Chinese President Xi ​Jinping in Beijing, ⁠scheduled to run from Thursday to Friday.

• Immediate resistance is located at  1.9817(38.2%fib), any close above will push the pair towards 1.9859 (SMA 20).

• Immediate support is seen at 1.9676 (Lower BB) and break below could take the pair towards 1.9529(23.6%fib).

 Recommendation: Good to sell around 1.9730 with stop loss of 1.9800 and target price of 1.9660