FxWirePro: EUR/AUD gains slightly, but downward resumption looks likely

• EUR/AUD gained slightly  on Wednesday    as markets assessed developments in the Middle East conflict..

• Markets were assesses mixed signals from the Middle East after Yemen's Iran-aligned Houthi group ⁠launched a missile attack on a Saudi oil tanker in the Red Sea.

• The development came after U.S. President Donald Trump said on Tuesday that his administration had held "very good discussions" with Iran during day-long negotiations..

• Euro zone business activity hit an eight-month high in July as services and manufacturing improved, though Middle East uncertainty weighed on the outlook.

• The S&P Global Euro Zone Composite PMI rose to 52.0 in July from 50.0 in June, topping the 51.9 flash estimate and returning to expansion for the first time since March.

• Immediate resistance is located at 1.6437(50%fib), any close above will push the pair towards 1.6516(Higher BB)

• Support is seen at 1.6275(38.2%fib)and break below could take the pair towards 1.6220(Lower BB)

Recommendation: Good to sell around 1.6380 , with stop loss of 1.6460 and target price of 1.6320