FxWirePro: EUR/NZD neutral in the near-term, scope for downward resumption

• EUR/NZD initially gained but gave up ground  as indecision emerged after  Donald Trump stepped back from plans to target Iran’s power and energy infrastructure.

• Trump said on Monday that Washington and Tehran have held constructive talks and that he had backed down from targeting Iran's power network

• The comments came hours ahead of a deadline that threatened further escalation in the conflict, now in its fourth week.

•  Meanwhile, the ECB kept rates steady on Thursday but indicated that future hikes may be possible in the coming months.

• Traders are currently pricing in two 25-basis-point rate hikes by year-end,  a far cry from the pre-war expectations of unchanged rates throughout the year.

• Immediate resistance is located at 1.9848 (38.2%fib), any close above will push the pair towards 1.9900(Psychological level).

• Immediate support is seen at 1.9701 (SMA 20) and break below could take the pair towards 1.9545(23.6%fib).

Recommendation: Good to sell  around 1.9850 with stop loss of 1.9950  and target price of 1.9760