FxWirePro: EUR/AUD drifts lower, could be on verge of bigger drop

• EUR/AUD dipped  on Monday as investors weighed the escalating conflict in the Middle East and the resulting surge in oil prices.

• Oil prices stalled despite the escalating conflict disrupting shipping through the Strait of Hormuz for a fifth straight day.

• U.S. crude rose 0.13% (10 cents) to $74.66 a barrel, while Brent settled unchanged at $81.40 per barrel.

• Precious metals trading was supported by a weaker dollar and demand for safe-haven assets.

•Spot gold rose 0.99% to $5,136.91 an ounce after falling 4.5% on Tuesday. Spot silver rose 1.65% to $83.39 an ounce after falling in the two last sessions.

• Technical signals are bearish as RSI is at 32, momentum studies  11,14  and 21 DMAs are trending down. 

• Strong  resistance is located at 1.6591(38.2%fib), any close above will push the pair towards 1.6623(SMA 20).

• Immediate support is seen at 1.6415 (23.6% fib) and break below could take the pair towards 1.6334(Lower BB).

  Recommendation: Good to sell   around 1.6450, with stop loss of 1.6560 and target price of 1.6370