• EUR/AUD declined on Friday as optimism over Ukraine peace talks and tariff delay boosed Australian dollar.
• Commodity-centric currencies often appreciate when investors have a more optimistic view of global trade. This is because the expectation of easier trade means more demand for commodities, which helps boost the economies of countries reliant on these exports.
•The pair is approaching 50% retracement at 1.6490, a daily close below which will accelerate downside towards 1.6450 .
• Immediate resistance is located at 1.6610( 38.2%fib), any close above will push the pair towards 1.6641 ( Feb 13th high).
• Strong support is seen at 1.6486 (50% fib ) and break below could take the pair towards 1.6418(Lower BB)
Recommendation: Good to sell around 1.9570, with stop loss of 1.9670 and target price of 1.9450.
