• EUR/AUD traded flat on Friday as trading activity was muted in the thin holiday market conditions.
•Markets wrapped up the last trading week of 2023, as market participants geared up for the Christmas holiday break.
• On the data front, annual U.S. inflation fell below 3% in November, confirming market expectations for a U.S. interest rate cut in March.
• Technical signals are bearish as RSI is at 37, daily momentum studies 5,9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.6227( 5DMA), any close above will push the pair towards 1.6298 (50%fib)
• Strong support is seen at 1.6151(23.6%fib ) and break below could take the pair towards 1.6100( (Psychological level).
Recommendation: Good to sell around 1.6200, with stop loss of 1.6280 and target price of 1.6120
