FxWirePro: NZD/USD uptrend loses steam, remains on bullish path

• NZD/USD eased on Tuesday as persistent uncertainty surrounding the Gulf conflict  prompted cautious trading conditions across risk-sensitive assets.

•Hopes for an Iran peace deal faded after Trump said the ceasefire was “on life support” and rejected Tehran’s demands as “garbage.”

• Stalled peace negotiations between the United States and Iran continue to increase the risk of renewed escalation in the Middle East, keeping energy markets sensitive and adding another layer of uncertainty for risk-sensitive currencies.

• Attention is now firmly   U.S. April CPI report is due later on Tuesday, with   consensus forecast inflation at +0.6% month-on-month and +3.7% year-on-year. A stronger-than-expected reading could reinforce expectations for prolonged higher U.S. interest rates.

•Markets are also closely monitoring Donald Trump’s two-day visit to China this week, where he is scheduled to meet Chinese President Xi Jinping to discuss a broad range of issues, including trade, technology, geopolitical tensions and developments in the Middle East.

•  Immediate resistance is located at 0.5976(Higher BB), any close above will push the pair towards 0.6000(38.2%fib).

•  Support is seen at 0.5935 (38.2%fib) and break below could take the pair towards 0.5904(SMA 20).

 Recommendation: Good to buy around 0.5940 with stop loss of 0.5880 and target price of 0.6000