• AUD/USD softened on Tuesday as traders remained cautious, weighing unconfirmed reports of potential Middle East peace talks.
• Attention is turning to the approaching ceasefire deadline, with U.S. Vice President Vance heading to Pakistan in a move seen as part of ongoing diplomatic efforts..
• President Donald Trump said negotiations are happening "relatively quickly" and will yield better terms than previous agreements..
• Now in its eighth week, the war has triggered an unprecedented energy shock, with oil prices surging as the Strait of Hormuz handling about 20% of global oil remains effectively closed..
• On the macro side, traders are focused on U.S. March retail sales due Tuesday and April S&P flash PMIs on Thursday for further direction.
• Immediate resistance is located at 0.7215 (23.6%fib), any close above will push the pair towards 0.7242 (Higher BB).
• Support is seen at 0.7113(38.2%fib) and break below could take the pair towards 0.7023(50%fib)
Recommendation: Good to buy around 0.7130 with stop loss of 0.7060, and target price of 0.7180
