• EUR/AUD steadied on Tuesday as market sentiment improved following the U.S. decision to postpone its planned tariffs on European Union imports.
• The delay, announced by President Trump, helped ease immediate trade concerns and provided support to the pair, reflecting investor relief over a reduced risk of a transatlantic trade conflict.
• Market participants are now watching for further developments in U.S.-EU trade talks, as well as upcoming economic data from both the Eurozone and Australia, to gauge the pair’s next move.
• On the data front, French inflation dropped to its lowest since December 2020 in May, driven by falling energy prices and slower service cost growth, INSEE data showed Tuesday.
• France's harmonized inflation rose 0.6% year-on-year in May, easing from 0.9% in April, according to preliminary data.
• Immediate resistance is located at 1.7719(38.2% fib), any close above will push the pair towards 1.7772(Higher BB).
• Immediate support is seen at 1.7442(50% fib) and break below could take the pair towards 1.7282(Lower BB).
Recommendation: Good to buy on dips around 1.7550, with stop loss of 1.7500 and target price of 1.7650.
