• EUR/AUD rose on Thursday as the Australian dollar faced selling pressure as U.S. President Trump reiterated his threat to impose new tariffs next week.
• Late Wednesday, Trump indicated that he would soon announce EU tariffs, including a 25% levy on autos. However, it was his Thursday comments about proceeding with tariffs on Canada, Mexico, and a new 10% tariff on China that sparked a fresh decline
• Given Australia's strong economic ties to China, any negative developments tend to weigh heavily the Australian dollar as China is a major trading partner.
• Technical are bullish, daily RSI is positive at 60, daily momentum studies 11 and 14 DMAs are trending up.
• Immediate resistance is located at 1.6680(38.2%fib), any close above will push the pair towards 1.6721 (Higher BB)
• Support is seen at 1.6612 (50% fib ) and break below could take the pair towards 1.6547(61.8% fib).
Recommendation: Good to buy around 1.6630 with stop loss of 1.6515 and target price of 1.6740
