FxWirePro: NZD/USD dips below lower range, bearish bias increases

• NZD/USD   dipped on Friday  as  Middle East conflict stoked inflation concerns and lifted expectations of a central bank rate hike next week.

•Due to Inflation concerns economists   expect the Reserve Bank of New Zealand to tighten policy sooner if inflation pressures broaden across the economy.

• On monetary policy, the RBNZ left its cash rate unchanged last month, highlighting the importance of keeping policy accommodative.

•Investors are also focused on central bank meetings next week in the U.S., Europe, and Japan to gauge how policymakers will react to the prospect of an energy-price shock.

•The swaps market showed that traders expect the European Central Bank to raise rates possibly as soon as June, while the U.S. Federal Reserve could leave it until December before cutting rates, from a previous expectation for July.

•  Immediate resistance is located at 0.5865(Daily high), any close above will push the pair towards 0.5895(50%fib).

•Support is seen at 0.5812(61.8%fib) and break below could take the pair towards 0.5780(Lower BB).

 Recommendation: Good to sell around 0.5830 with stop loss of 0.5900  and target price of 0.5760