• EUR/AUD declined on Friday as 2-year Bund-Treasury yields spreads, a proxy for ECB-Fed policy pricing, fell to its most negative since November 2020.
• Euro also was weighed down on fears that Russia-Ukraine tense situation was set to escalate, resulting in risk-averse trade favoring the dollar and yen over the euro.
• The pair is approaching 38.2%fib support,a daily close below will accelerate towards 1.5600 in the short term.
• From a technical viewpoint, the moving averages are pointing downwards, while the RSI is strongly bearish at 44.
• Immediate resistance is located at 1.5826 (50%fib), any close above will push the pair towards 1.5866 ( 9DMA).
• Strong support is seen at 1.5710 (38.2%fib) and break below could take the pair towards 1.5644(Lower BB).
Recommendation: Good to sell around 1.5770, with stop loss of 1.5900 and target price of 1.5650.
