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FxWirePro: NZD/USD eases as Middle East tensions weigh on sentiment

• NZD/USD dipped  on Tuesday  as renewed geopolitical tension in the Middle East weighed on risk appetite and commodity-linked currencies.

• Reports suggesting Iran has paused communication with U.S. intermediaries raised fresh doubts over the progress of any peace negotiations.

• However, counter statements from Trump indicating that talks are still “continuing at a rapid pace” added confusion and volatility to sentiment.

• Brent crude surged intraday before closing 4.5% higher, after briefly spiking to $97.79 per barrel amid supply disruption fears.

• New Zealand’s Q1 terms of trade data, due Wednesday, will be closely watched, with attention on both import and export price trends for signals on external balance strength.

•  Immediate resistance is located at 0.5978(38.2%fib), any close above will push the pair towards 0.5999(Higher BB).

•  Support is seen at 0.5907(Lower BB) and break below could take the pair towards 0.5901(50%fib).

 Recommendation: Be on sideliness

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