• The EUR/AUD held steady on Friday as risk aversion gripped markets, with trade war uncertainties weighing on the risk-sensitive Australian dollar.
• Australia's government will release its federal budget on Tuesday, prioritizing cost-of-living relief ahead of the May election. The budget is expected to return to a deficit after two rare surpluses.
• Meanwhile, markets are closely watching the RBA's upcoming policy meeting on March 31-April 1, though expectations remain for the Official Cash Rate (OCR) to stay unchanged amid ongoing economic uncertainties.
• Immediate resistance is located at 1.7337(23.6%fib), any close above will push the pair towards 1.7426(March 11th high).
• Immediate support is seen at 1.7142(38.2%fib) and break below could take the pair towards 1.6981(50% fib).
Recommendation: Good to buy on dips around 1.7230, with stop loss of 1.7130 and target price of 1.7300
