• EUR/AUD recovered some ground on Friday as markets kept an eye on on-going Middle East peace negotiations.
• Investors will closely watch the talks, particularly efforts to reopen the Strait of Hormuz, a key route for global energy supplies. .
• The fragile two-week truce has come under strain amid alleged violations, including Israel’s continued strikes on Lebanon, even as Prime Minister Benjamin Netanyahu signaled interest in direct talks with Beirut.
• The Strait of Hormuz remained closed by Iran, which set conditions for talks, including a ceasefire in Lebanon and the release of its frozen assets..
• The week began on a tense note, with U.S. President Donald Trump threatening to destroy “an entire civilization” if Iran did not comply with his demands, but markets rallied as a truce started to take shape.
• Strong resistance is located at 1.6641(50% fib), any close above will push the pair towards 1.6715(April 7th high)
• Immediate support is seen at 1.6504 (Daily low) and break below could take the pair towards 1.6426(38.2%fib).
Recommendation: Good to sell around 1.6600, with stop loss of 1.6650 and target price of 1.6530
