• EUR/AUD dipped on Monday as the pair came under pressure after Trump said he planned to announce reciprocal tariffs on many countries by Monday or Tuesday.
• German Chancellor Olaf Scholz said the EU is awaiting formal notice of new U.S. tariffs but would respond with retaliatory measures.
• This week's main U.S. economic focus will be consumer price inflation data for January due on Wednesday.
• The EUR/AUD sell-off continues, driven by ongoing risk aversion due to the trade dispute, as uncertainty rises over the potential economic impact of tariffs and global trade tensions.
• Immediate resistance is located at 1.6598 (50% fib), any close above will push the pair towards 1.6648(Feb 7h high).
• Strong support is seen at 1.6395(50% fib) and break below could take the pair towards 1.6368(Lower BB )
Recommendation: Good to sell around 1.6420 with stop loss of 1.6480 and target price of 1.6360
