FxWirePro: EUR/AUD holds narrow range, focus on near-term support

• EUR/AUD traded in narrow range on Thursday  as investors remained cautious about developments in the U.S.-China talks.

•  China’s Xi Jinping told U.S. President Donald Trump that trade talks were progressing, but warned Taiwan tensions could damage relations and potentially lead to conflict. 

•  The Trump-Xi summit is aimed at addressing key issues including trade, U.S. arms sales to Taiwan, and the reopening of the Strait of Hormuz..

• On the policy front, ECB chief economist Philip Lane signalled that further rate hikes may be needed to control inflation, with markets currently pricing in more than two ECB rate increases this year.

• Money markets currently price in more than two ECB rate increases this year, with the first one expected in June.
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• Immediate resistance is located at 1.6303(SMA 20), any close above will push the pair towards 1.6355(38.2%fib)

•  Support is seen at 1.6114(23.6%fib) and break below could take the pair towards 1.6070(Lower BB).

Recommendation: Good to sell   around 1.6160, with stop loss of 1.6250 and target price of 1.6100