• EUR/AUD eased slightly on Wednesday on waning optimism about the expected German spending package and on concerns tariffs may impact growth.
• ECB President Lagarde warned that trade, defense, and climate shocks could increase inflation volatility and prolong price growth.
• Investors also watched for political developments in Portugal after the centre-right minority government collapsed on Tuesday and Germany ahead of the vote to pass economic reforms.
• The euro was trading down 0.04% at $1.5640. The currency has gained nearly 5.8% against the Canadian dollar so far in March.
• Immediate resistance is located at 1.7436(23.6% fib), any close above will push the pair towards 1.7500(Psychological level).
• Immediate support is seen at 1.7120(38.2% fib) and break below could take the pair towards 1.7039(50% fib).
Recommendation: Good to buy on dips around 1.7220 with stop loss of 1.7140 and target price of 1. 7400
