FxWirePro: EUR/ NZD gains some upside momentum but still bearish

• EUR/NZD edged higher, but gains remained limited as investors weighed hotter-than-expected inflation data while awaiting the upcoming summit between U.S. President Donald Trump and China’s President Xi Jinping.

• The U.S. Labor Department’s Bureau of Labor Statistics reported that producer prices rose more than expected in April, marking the largest increase since early 2022..

• Markets are focused on the upcoming US-China talks, where trade, business ties, and strategic technology issues are expected to take center stage.

•Investors are watching whether former President Trump will press China to use its ties with Tehran to help secure the Strait of Hormuz, as lingering restrictions and disrupted shipping through the key waterway continue to keep oil prices elevated above $100 a barrel despite a fragile ceasefire between Washington and Tehran.

•Rising inflation risks have pushed money markets to price in more than two European Central Bank rate hikes by ​year-end.

• 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