• EUR/AUD consolidated around 1.6737 on Wednesday as improving risk appetite driven by hopes that the Iran conflict may ease helped ease stagflation fears.
• Trump said on Wednesday that Iran had asked for a ceasefire, but he will consider it only after Tehran stops blocking the Strait of Hormuz. Iran denied it made any such request.
• Iran’s foreign ministry denied claims that it requested a ceasefire, keeping Middle East tensions elevated.
• The February trade balance is due Thursday, with a Reuters poll forecasting a 2.85 billion AUD surplus, which could influence AUD sentiment.
•March US non-farm payrolls is due on Friday, are expected to show a modest gain of +60k according to Reuters, which could impact risk appetite and U.S. dollar movements.
. • Technical signals are bearish as RSI is at 37, momentum studies 11,14 and 21 DMAs are trending down.
• Strong resistance is located at 1.6820(38.2% fib), any close above will push the pair towards 1.6878(Higher BB)
• Immediate support is seen at 1.6683 (50% fib) and break below could take the pair towards 1.6551(61.8% fib).
Recommendation: Good to buy around 1.6700, with stop loss of 1.6600 and target price of 1.6800
