• The EUR/AUD eased slightly on Monday as caution persisted, despite growing hopes that U.S. President Donald Trump might take a softer stance on tariff policies in the coming weeks.
• The global trade conflict remained in focus as investors analyzed reports that Trump's administration may exempt certain sector-specific tariffs while implementing reciprocal levies on April 2.
• Investors awaited details on possible exemptions from sector-specific tariffs in Trump's April 2 reciprocal levies, though a Trump official warned that no final decisions had been made.
• On the data front, HCOB's preliminary composite euro zone Purchasing Managers' Index, compiled by S&P Global, rose to 50.4 this month from February's 50.2, its highest since August..
• Immediate resistance is located at 1.7240(38.2%fib), any close above will push the pair towards 1.7420(23.6%fib).
• Immediate support is seen at 1.7112(50%fib) and break below could take the pair towards 1.6984(50% fib).
Recommendation: Good to buy on dips around 1.7150, with stop loss of 1.7090 and target price of 1.7250
