FxWirePro:NZD/USD drifts lower, could be on verge of bigger drop

• NZD/USD   eased on Thursday as fears of a prolonged Iran conflict kept investors cautious.

• Geopolitical risks remain elevated as the Iran conflict expands, while the United States is trying to reduce concerns about global oil and gas supply disruptions.

•Energy market pressures are rising as storage capacity limits are forcing some production cutbacks, supporting higher energy prices.

•New Zealand   heavy reliance on imported energy makes its economy vulnerable to global oil price shocks

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

•  Immediate resistance is located at 0.5979(38.2%fib), any close above will push the pair towards 0.5990(SMA 20).

•Support is seen at 0.5889(50%fib) and break below could take the pair towards 0.5872(Lower BB).

 Recommendation: Good to sell around 0.5930 with stop loss of 0.5980  and target price of 0.5860