• EUR/AUD advanced on Monday as the euro firmed on growing optimism over a possible Ukraine peace agreement.
• Meanwhile, data showed Euro zone inflation declined slightly less than expected last month, but a key component fell, reinforcing expectations for an ECB rate cut on Thursday and further policy easing ahead.
• The key focus will be on the central bank's response to U.S. plans for reciprocal" tariffs on the EU, as Trump’s tariff deadlines for Canada, Mexico, and an additional 10% duty on China approach.
•Technical are bullish, daily RSI is positive at 70, daily momentum studies 11 and 14 DMAs are trending up.
•Immediate resistance is located at 1.6880(Daily high), any close above will push the pair towards 1.6920(23.6% fib)
•Strong support is seen at 1.6772(38.2%fib) and break below could take the pair towards 1.6753(EMA5).
Recommendation: Good to buy around 1.6840, with stop loss of 1.6770 and target price of 1.6950
