• EUR/AUD recovered some ground on Friday as Australian dollar weakened as traders continue to be worried about the alarming spread of the highly contagious coronavirus variants in Australia.
•Australia continued struggle to contain the domestic coronavirus situation, primarily in New South Wales, hindering economic activity amid lockdowns.
• Pair traded in 1.5951/1.6020 range and was last trading at 1.5992 into the US afternoon. Another dip is likely.
• Technical signals are bearish as RSI is trending flat, daily momentum studies 5,9 and 11 DMAs are trending down.
• Immediate resistance is located at 1.6017( Daily high), any close above will push the pair towards 1.6034(50%fib).
• Strong support is seen at 1.5953 (38.2% fib ) and break below could take the pair towards 1.5927 (30DMA).
Recommendation: Good to sell around 1.6250, with stop loss of 1.6354 and target price of 1.6080.
