FxWirePro: EUR/AUD extends its drop, potential for further bearish continuation

• EUR/AUD slipped lower  as easing U.S.-China trade tensions lifted risk appetite, favoring risk-sensitive currencies like the Australian dollar.

• Beijing has renewed its demand for the United States to cancel tariffs on Chinese goods, intensifying pressure on Washington to take concrete steps toward de-escalating long-running trade tensions.

• Treasury Secretary Scott Bessent this week indicated there might be an easing in tensions with China.

•  Bessent’s comments raised hopes of easing U.S.–China trade tensions, but he emphasized tariff cuts would need to be mutual, not unilateral,

• The call comes amid ongoing market volatility fueled by uncertainty surrounding U.S.-China trade relations.

• Immediate resistance is located at 1.8000 (38.2% fib), any close above will push the pair towards 1.8139(April  10st high).

• Immediate support is seen at 1.7701(50% fib) and break below could take the pair towards 1.7409(61.8% fib).

Recommendation: Consider selling around 1.7800, with a stop loss at 1.7900 and a target price of 1.7700.