• EUR/AUD declined on Thursday as riskier currencies like Australian dollar continued to gain on cautious hopes that coronavirus pandemic is peaking.
• On top of hopes of a peak in the epidemic, commodity-linked currencies like Australian dollar, got additional boost from hopes that major oil producing countries could agree to cut output.
• At GMT 15:12, the pair was trading down 0.38 percent at $1.7350, after hitting session low at 1.7306.
• Selling pressure will remain in the short-term, only a move above 1.7641 (5 DMA) strong resistance would indicate the weakness in the pair has run out.
• Daily, monthly RSIs, although being oversold, imply bearish momentum is intact. The MACD is also moving with a stronger negative momentum.
• On the upside, Immediate resistance is located at 1.7513 ( Daily high), any close above will push the pair towards 1.7641 (5 DMA)
• On the downside, immediate support is seen at 1.7300 (Daily low) and break below could take the pair towards 1.7157 (Lower BB).
Recommendation: Good to sell on rally around 1.7400, with stop loss of 1.7600 and target price of 1.7000.
