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

• NZD/USD   traded in narrow range on Tuesday  as investors awaited a U.S. deadline on potential strikes against Iran, with rising tensions weighing on sentiment ahead RBNZ   meeting..

•Hopes for an extension of the deadline or some sort of ceasefire had supported sentiment, but the clock was ticking with no clear sign of progress sending oil prices higher.

• The Reserve Bank of New Zealand meets on Wednesday and is widely expected to hold the official cash rate at 2.25%, where it has been since a cut last November.

• RBNZ Governor Anna Breman has emphasised they would look through the initial impact of higher energy costs, but were alert to any sign of it feeding into inflation expectations.

• Markets thus imply scant chance of a hike this week, but around a 60% probability of a move in July.

•  Immediate resistance is located at 0.5722(38.2%fib), any close above will push the pair towards 0.5788(SMA 20).

•Support is seen at 0.5658(Lower BB) and break below could take the pair towards 0.5592(23.6%fib)

 Recommendation: Good to sell around 0.5710 with stop loss of 0.5760  and target price of 0.5650