• EUR/AUD initially dipped but recovered some ground on Wednesday as investors digested U.S.-EU trade deal that renewed concerns over the Eurozone's economic prospects.
• The deal may help Europe avoid recession but is unlikely to reverse stagnation, with 2025 growth projected at just 0.5%–0.9%, below the ECB’s 1% target.
• The 15% tariff on most EU goods—though lower than initially threatened—remains well above pre-2025 levels. Key sectors like pharmaceuticals still face regulatory uncertainty.
• Eurozone Q2 GDP rose by 0.1%, narrowly beating flat expectations. Spain (+0.7%) and France (+0.3%) posted gains, while Germany and Italy contracted by 0.1%.
• Technical indicators remain firmly bearsih, with the RSI at 43 and both the 9- and 11-day moving averages trending downwards, reinforcing negative momentum.
• Immediate resistance is located at 1.7854(SMA 20), any close above will push the pair towards 1.7927(July 28th high)
• Strong support is seen at 1.7707(50%fib) and break below could take the pair towards 1.7599(Lower BB).
Recommendation: Good to sell around 1.7780, with stop loss of 1.7960 and target price of 1.7720
