• EUR/AUD fell on Thursday as the Australian dollar strengthened against the euro, driven by concerns over a global trade war after both the US and China implemented cautious tariff measures.
•US President Donald Trump and Chinese President Xi Jinping are set to discuss trade issues in an upcoming call, sparking optimism that tensions could ease and tariffs may be reversed.
• Pair traded in 1.6594 -1.6509 range and was last trading at 1.6530 in late US afternoon.
• EUR/AUD is now on course to register a close below the 50%fib level, chart points to bigger drop towards 1.6450 level
• Technical signals are bearish as RSI is at 43, daily momentum studies 11,14 and 21 DMAs are trending down.
• Immediate resistance is located at 1.6635(50%fib), any close above will push the pair towards 1.6675(Feb 4th high)
• Strong support is seen at 1.6505 (50%fib ) and break below could take the pair towards 1.6460 (Lower BB).
Recommendation: Good to sell around 1.6550, with stop loss of 1.6630 and target price of 1.6480.
