Global trade concerns continue to influence currency movements. The Australian Dollar and other risk-sensitive currencies have risen recently as the US Dollar weakened. However, fresh worries about new US tariffs have again put pressure on these currencies.
Earlier in February, US President Donald Trump temporarily boosted markets by postponing a 25% tariff on Canadian and Mexican goods. But that optimism quickly disappeared as new tariff threats surfaced. The US has now imposed a 10% tariff on Chinese imports, raising fears that China might retaliate.
Since China is Australia’s biggest trading partner, any trade war escalation could hurt Australian exports—especially commodities like iron ore and coal. China has even hinted that it may challenge the US tariffs at the World Trade Organization (WTO), creating more uncertainty for countries like Australia that rely heavily on exports.
EURAUD – D1 Timeframe
On the daily timeframe chart of EURAUD, the price movement created an SBR pattern (Sweep break Retest), with a demand zone sitting on top of the 76% Fibonacci retracement level, right behind the FVG area. The fact that liquidity would have been swept before the price tapped into the demand zone further confirms its validity.
EURAUD – H4 Timeframe
On the EURAUD 4-hour timeframe chart, we see the price approaching the area of demand, with the induced low already within reach of the momentum. Following this, I expect the market to give off a bullish reaction from the demand area.
Analyst’s Expectations:
- Direction: Bullish
- Target- 1.67425
- Invalidation- 1.60984
, with a demand zone sitting on top of the 76% Fibonacci retracement level, right behind the FVG area. The fact that liquidity would have been swept before the price tapped into the demand zone further confirms its validity.){kind=link}