FxWirePro: EUR/AUD falls below 1.7000, bears keep the advantage

• EUR/AUD slipped lower on Thursday as hawkish RBA expectation and higher commodity prices supported Australian dollar.

•   Oil prices surged, with U.S. crude up 3.39% to $65.36 a barrel and Brent jumping to $70.74 per barrel, up 3.42% on the day.

•Copper prices surged to a record high above $14,000 per metric ton on Thursday, as speculative buying intensified on expectations of robust demand, aided by a weaker dollar and ongoing geopolitical tensions.

• On the data  front, Australia’s December-quarter trade data showed a stronger external outlook, with export prices rebounding and import prices rising unexpectedly, boosting terms of trade.

•Export prices jumped 3.2% q/q in Q4, reversing a 0.9% drop in Q3, while import prices rose 0.9% q/q, beating expectations for a 0.2% fall.

• Immediate resistance is located at 1.7179(38.2%fib), any close above will push the pair towards 1.7290(SMA 20).

• Strong support is seen at 1.6913(23.6%fib) and break below could take the pair towards 1.6828(Lower BB).

Recommendation: Good to sell around 1.7000 with stop loss of 1.7080 and target price of 1.6860