• EUR/AUD traded in tight range as traders reacted positively to US-China trade truce but remained cautious due to uncertainty around future negotiations.
• Markets now turn attention to key data releases on Tuesday. Germany’s ZEW Economic Sentiment Index (May) will shed light on Eurozone growth expectations.
• Pair traded in a quiet 1.7519/1.7337 range and was last trading at 1.7404 into the US afternoon.
• Technical signals are bearish as RSI is at 40, daily momentum studies 5, 9 and 14 DMAs are trending south.
• Immediate resistance is located at 1.6206 (23.6%fib ), any close above will push the pair towards 1.6308(23rd May high).
• Strong support is seen at 1.7233 (38.2% fib) and break below could take the pair towards 1.7000 (Psychological level).
Recommendation: Good to sell around 1.7410 , with stop loss of 1.7480 and target price of 1.7320
