• EUR/AUD rose on Monday as uncertainty about trade negotiations between the United States and the European Union supported a rally in euro.
• The European Union is considering a wider range of potential countermeasures against the United States, as hopes for a viable trade agreement with Washington diminish, according to EU diplomats.
• U.S. President Donald Trump has warned of 30% tariffs on European imports if a trade deal isn’t finalized by the August 1 deadline.
• Meanwhile, this week’s domestic focus is on the upcoming European Central Bank meeting and the release of flash PMI data.
• European Central Bank rate decision is unlikely to deliver surprises, with policymakers expected to hold rates steady.
• Immediate resistance is located at 1.8051(Higher BB), any close above will push the pair towards 1.8149 (38.2%fib)
• Strong support is seen at 1.7802(50%fib) and break below could take the pair towards 1.7737(Lower BB).
Recommendation: Good to buy around 1.7920, with stop loss of 1.7850 and target price of 1.8050
