• EUR/AUD dipped on Wednesday as Australian dollar firmed as investors positioned ahead of key Australian labor market data.
• Attention now shifts to Australia’s March employment report, due later today. Expectations point to a modest labor market expansion, with the economy projected to add around 20K jobs.
• A stagflation warning from RBA Deputy Governor Andrew Hauser on Tuesday has heightened worries about the outlook for the Australian economy..
• Andrew Hauser said the coming months will be “challenging” for Australia, citing an energy shock linked to Middle East conflicts alongside persistent inflationary pressures.
• Strong resistance is located at 1.6518(50% fib), any close above will push the pair towards 1.6620(SMA 20)
• Immediate support is seen at 1.6423(Lower BB) and break below could take the pair towards 1.341(38.2%fib).
Recommendation: Good to sell around 1.6470, with stop loss of 1.6550 and target price of 1.6400
