• The EUR/AUD pair traded within a narrow range on Monday as investors remained cautious ahead of high-stakes trade negotiations between the U.S. and China in London.
• With no major economic data from the eurozone or Australia to drive momentum, market participants stayed on the sidelines, awaiting signs of progress in efforts to ease trade tensions between the world’s two largest economies.
• The outcome of these talks is seen as critical to global risk sentiment, which in turn could influence demand for risk-sensitive currencies like the Australian dollar.
• Immediate resistance is located at 1.7624(June 6th high ), any close above will push the pair towards 1.7715(50% fib).
• Strong support is seen at 1.7488(61.8% fib) and break below could take the pair towards 1.7398(Lower BB).
Recommendation: Be on sidelines
