FxWirePro: EUR/AUD downtrend loses steam but outlook still bearish

• EUR/AUD initially dipped d on Friday  but gained some ground as investors took comfort from signs that the European Central Bank (ECB) is nearly done raising interest rates.

•   The ECB on Thursday raised its key interest rate to a record high of 4%, but with the euro zone economy in the doldrums, signalled that the hike was likely to be its last..

• A close below 50% fib support puts  1.6350 level   in focus.

• Technicals   highlight dowsiderisks. The 5, 9 and 11  day moving averages are trending south, daily RSI is pointing downwards at 40.

• Immediate resistance is located at 1.6580(38.2%fib), any close above will push the pair towards 1.6650(5DMA).

• Strong support is seen at 1.6440(50% fib) and break below could take the pair towards 1.6305(61.8% fib)

Recommendation: Good to sell  around 1.6580, with stop loss of 1.6700 and target price of 1.6500