FxWirePro: EUR/AUD extends drop, eyes 1.7200 level

• EUR/AUD extended downward movement on Tuesday as the Australian dollar gained strength, boosted by renewed risk appetite following the U.S.-China trade agreement.

• On Monday, the U.S. and China announced a 90-day pause in their trade war, reducing reciprocal tariffs and suspending other measures while they work towards a more permanent agreement.. 

• The U.S. will temporarily reduce the additional tariffs on Chinese imports to 30% from 145% for three months, while China will cut its tariffs on U.S. goods to 10% from 125% during the same period.

• Technical signals are bearish as RSI is at 37, daily momentum studies  11, 14 and 21 DMAs are trending south. 

• Immediate resistance is located at 1.7475(38.2%fib ), any close above will push the pair towards 1.7631(8th May high).

• Strong support is seen at 1.7245 (Lower BB) and break below could take the pair towards 1.7122(23.6%fib).

Recommendation: Good to sell around 1.7300 , with stop loss of 1.7380  and target price of 1.7200