FxWirePro: EUR/AUD slips as bearish momentum builds on Euro weakness

• EUR/AUD dipped on Tuesday as euro was pressured by lingering doubts over the benefits of the new EU-U.S. trade framework for the Eurozone.

• Several European Union leaders have voiced strong criticism of the recently concluded trade agreement with the United States, arguing that the deal disproportionately benefits Washington at the expense of European industries.

• Critics say the agreement, which imposes a 15% tariff on most EU goods entering the U.S., could undermine the competitiveness of key European sectors and fails to address long-standing trade imbalances.

• Market focus now shifts to Wednesday’s second-quarter GDP reports from both the euro zone and the U.S., ahead of the Federal Reserve’s closely watched rate decision and Friday’s key U.S. employment data.  

•  Immediate resistance is located at 1.7863 (SMA 20), any close above will push the pair towards 1.8070 (38.2%fib)

• Strong support is seen at 1.7699(50%fib) and break below could take the pair towards 1.7656(Lower BB).

Recommendation: Good to sell around 1.7730, with stop loss of 1.7850 and target price of 1.7650