• EUR/AUD traded in tight range on Thursday as investors digested ECB rate decision and awaited for new developments on the trade front.
• The European Central Bank cut its three key interest rates by 25 basis points, reflecting its updated outlook with inflation near the 2% target.
• Since last June, the ECB has cut borrowing costs eight times—totaling a 2 percentage point reduction—to support the eurozone economy, which was already weakened before facing additional challenges from unpredictable U.S. economic and trade policies.
• Trump and Xi agreed to further talks with each inviting the other to their respective countries. Trump later added that talks with China were in good shape.
• Investors remain worried about U.S. trade negotiations and the lack of progress in hashing out deals ahead of an early July deadline.
• Immediate resistance is located at 1.7801(38.2%fib), any close above will push the pair towards 1.7899 (April 30th high).
• Immediate support is seen at 1.7497 (61.8% fib) and break below could take the pair towards 1.7291 (Lower BB).
Recommendation: Good to buy on dips around 1.7580, with stop loss of 1.7580, and target price of 1.7650
