• EUR/AUD eased on Friday as investors also looked for fresh developments on the trade front as optimism from the U.S.-China trade truce waned.
• Markets are closely watching the upcoming UK-EU summit, as investors seek clarity on trade, regulatory cooperation, and diplomatic relations between the two sides.
• On Thursday, EU trade ministers called for a more ambitious trade deal than Britain’s agreement with the U.S., warning that a pact retaining U.S. tariffs would prompt EU countermeasures.
• On the data front,France’s unemployment rate for the first quarter came in at 7.1%, according to the latest official data..
• Italian EU-harmonised consumer prices increased by 2% year-on-year in April, according to revised data, slightly lower than the preliminary estimate of a 2.1% rise..
• Immediate resistance is located at 1.7533 (Daily high), any close above will push the pair towards 1.7683(50 fib).
• Immediate support is seen at 1.7372 (61.8% fib) and break below could take the pair towards 1.7137(Lower BB).
Recommendation: Good to buy on dips around 1.7400, with stop loss of 1.7320 and target price of 1.7480
