• EUR/AUD rebounded sharply on Friday as buying intensified on President Trump's threat to increase tariffs on China.
• Trade war fears resurfaced after Donald Trump threatened to impose steep tariffs on Chinese imports, raising concerns about renewed tensions between the world’s two largest economies.
• Trump warned of a “massive increase” in tariffs on Chinese imports, retaliating against Beijing’s proposed export controls on rare earth production, unsettling global financial m arkets.
• This week, China tightened export restrictions on critical rare earth materials and announced on Friday that it will levy additional port fees on U.S. vessels starting October 14.
• Immediate resistance is located at 1.7961 (Higher BB), any close above will push the pair towards 1.8137 (38.2 % fib).
• Support is seen at 1.7778 (50% fib) and break below could take the pair towards 1.7617 (Lower BB).
Recommendation: Good to buy around 1.7920, with stop loss of 1.7860 and target price of 1.8030
