• 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
