• EUR/AUD declined on Thursday after the European Central Bank cut interest rates, as expected, and cautioned that U.S. tariffs may significantly impact economic growth.
• In a bid to stimulate a faltering euro zone economy, the European Central Bank cut interest rates for the seventh time in a year, as looming U.S. tariffs threaten further strain.
• The rate cut received unanimous backing from policymakers, including hawkish members who conceded that the global trade war has materially shifted the economic landscape.
• Markets are now pricing in rate cuts at the next two ECB meetings, which would lower the benchmark rate to 1.75%.
• Immediate resistance is located at 1.8081(38.2%fib), any close above will push the pair towards 1.8307(April 4th high).
• Immediate support is seen at 1.7705(50%fib) and break below could take the pair towards 1.7437(April 4th low).
Recommendation: Good to buy around 1.7850, with stop loss of 1.7780 and target price of 1.7960
