• EUR/AUD steadied on Wednesday as investors also look for fresh cues about progress in trade talks between the Eurozone and the US.
• German opposition leader Friedrich Merz confirmed an upcoming meeting with U.S. President Donald Trump and indicated he would propose a mutual removal of tariffs to ease transatlantic trade tensions.
• Meanwhile, the European Central Bank (ECB) said on Wednesday that buoyant credit and stock markets appear "out of sync" with a world facing heightened geopolitical tensions and trade uncertainty.
• The warning came in the ECB's biannual Financial Stability Review, which highlighted a range of persistent and emerging risks from shrinking cash buffers in investment funds to inflated property values and elevated levels of government debt.
• Looking ahead, investors are awaiting the release of HCOB PMI figures for the Eurozone on Thursday, hoping to gauge the strength of the region's economic recovery.
• Immediate resistance is located at 1.7708(38.2% fib), any close above will push the pair towards 1.7828(Higher BB).
• Immediate support is seen at 1.7510 (50% fib) and break below could take the pair towards 1.7407(May 20th low).
Recommendation: Good to buy on dips around 1.7580, with stop loss of 1.7500 and target price of 1.7670.
