• The EUR/AUD strengthened as euro attracted buyers following reports that German political parties had agreed to form a coalition..
• Germany's conservatives, led by chancellor-in-waiting Friedrich Merz, reached a deal with the center-left Social Democrats (SPD) on Tuesday to form a coalition government..
• The Trump administration is negotiating trade deals with countries like Japan, with Treasury Secretary Scott Bessent noting that these talks follow multiple calls from other nations.
• The EU faces a 20% tariff on various products starting Wednesday, adding to existing tariffs on autos and metals. Trump has also threatened tariffs on EU alcoholic drinks.
• Immediate resistance is located at 1.8480(38.2%fib), any close above will push the pair towards 1.8809(23.6%fib).
• Immediate support is seen at 1.8396(Daily low) and break below could take the pair towards 1.896(50%fib).
Recommendation: Good to buy around 1.8400 with stop loss of 1.8240 and target price of 1.8650
