• EUR/AUD dipped on Wednesday as investors moved back into riskier assets, supporting the Australian dollar.
• U.S. officials downplayed immediate concerns about oil and gas supply disruptions, the ongoing Iran conflict continues to create uncertainty in energy markets.
• Analysts are closely monitoring developments, as any escalation could indirectly affect commodity-linked currencies like the Australian dollar.
• Market attention now turning to Australia’s January trade balance, expected at 0030 GMT. Analysts predicts a deficit of 3.9 billion AUD.
• Technical signals are bearish as RSI is at 27, momentum studies 11,14 and 21 DMAs are trending down.
• Strong resistance is located at 1.6594(38.2%fib), any close above will push the pair towards 1.6668(SMA 20)
• Immediate support is seen at 1.6437 (23.6% fib) and break below could take the pair towards 1.6366(Lower BB).
Recommendation: Good to sell around 1.6440, with stop loss of 1.6500 and target price of 1.6380
