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• EUR/AUD slipped lower on Friday as uncertainty sparked by U.S. President Donald Trump's tariff war negatively impacted investor sentiment.
• President Trump's fluctuating stance on tariffs has caused conerns, with his threat of a 200% tariff on European wine and alcohol, in retaliation for the EU's levies on U.S. whiskey, contributing to market volatility.
• Meanwhle,German Chancellor-in-waiting Friedrich Merz announced he had secured the crucial backing of the Greens for a massive increase in state borrowing.
• On the economic front, German inflation unexpectedly fell in February, building a case for further policy easing from the European Central Bank.
• Immediate resistance is located at 1.7301(Daily high), any close above will push the pair towards 1.7373(23.6% fib).
• Immediate support is seen at 1.7133(38.2% fib) and break below could take the pair towards 1.6953(50% fib).
Recommendation: Good to buy on dips around 1.7150 with stop loss of 1.7050 and target price of 1. 7250
