• EUR/AUD inched higher Tuesday as investors monitored progress in global trade negotiations and closely followed developments surrounding U.S. tax policy.
• As the July 9 deadline nears, fears over U.S. tariffs and their broader implications for global growth have re-emerged.
• Meanwhile, The Republican-led U.S. Senate approved President Donald Trump’s sweeping tax and spending bill, a major legislative package that advances key policy priorities and is expected to add $3.3 trillion to the national debt. The bill now heads to the House for final approval.
• European Central Bank President Christine Lagarde stated that the euro's recent gains against the dollar not only mirror market dynamics but also signal underlying strength in the euro zone economy.
Technical indicators point to a bullish bias, with RSI at 63 and the pair holding above the 5, 11, and 14 DMAs.
• Immediate resistance is located at 1.8035(50%fib), any close above will push the pair towards 1.8124(Higher BB)
• Strong support is seen at 1.7845 (61.8%fib) and break below could take the pair towards 1.7770(SMA 50).
Recommendation: Good to buy around 1.7940, with stop loss of 1.7640 and target price of 1.8000
