FxWirePro: EUR/AUD downside pressure builds, key support level in focus

• EUR/AUD declined on Monday as  diverging ECB-Fed policy paths weighed on the pair. 

•Fed’s Powell reiterated on Monday that, Fed's is willing tighten monetary policy to fight inflation, while the ECB remained reluctant to tighten its policy due to economic risks from the war in Ukraine. 

•Selling pressure will remain in the short-term, only a move above 1.5335 ( 50 % fib) strong resistance  will shift the bias higher.

• Technical signals show the pair could lose more ground as RSI is at 34 bearish, and 9, 11,21 DMA’s are trending south. 

• Immediate resistance is located at 1.4971 (5DMA), any close above will push the pair towards 1.5122 (38.2%fib).

• Immediate support is seen at 1.4867 (23.6%fib) and break below could take the pair towards 1.4631(Lower BB).

Recommendation: Good to sell round 1.4890 with stop loss of 1.5000 and target price of 1.4800