• EUR/AUD edged lower on Thursday as investors remained cautious amid fresh U.S. tariff announcements.
• The European Union still anticipates friction in trade relations with Washington, but an EU official said it feels reassured by a framework deal that caps tariffs on most of its exports to the U.S. at 15%.
• The 27-member European Union, the U.S.'s largest trade partner, is still waiting on executive orders to implement the reduced 15% tariff on cars and parts, just days before the new rates kick in.
•On the data front, German industrial production dropped in June to its lowest since 2020, pressured by weak demand and Chinese competition, though exports beat expectations, Thursday’s data showed.
• Industrial output in Germany fell by 1.9% month-on-month in June, significantly exceeding the
expected 0.5% decline, the federal statistics office reported.
• Immediate resistance is located at 1.8009 (Higher BB), any close above will push the pair towards 1.8073(38.2%fib)
• Strong support is seen at 1.7848(SMA 20) and break below could take the pair towards 1.7696(50%fib).
Recommendation: Good to buy around 1.7880, with stop loss of 1.7800 and target price of 1.8000
