• EUR/AUD recovered some ground on Tuesday as risk aversion intensified amid escalating conflict in the Middle .
• On Tuesday, U.S. President Donald Trump sought to justify a broad, open-ended war on Iran saying he had "a feeling" Iran would attack after nuclear negotiations stalled.
• Israel's military said it struck an Iranian compound aiming to develop "necessary capabilities" for nuclear weapons, without providing evidence.
• The war, in its fourth day, has intensified as Israeli and U.S. forces pounded targets across Iran, prompting Iranian retaliatory strikes around the Gulf while Israel also attacked Lebanon.
• Technical signals are bearish as RSI is at 27, momentum studies 11,14 and 21 DMAs are trending down.
• Strong resistance is located at 1.6585(38.2%fib), any close above will push the pair towards 1.6688(SMA 20)
• Immediate support is seen at 1.6425 (23.6% fib) and break below could take the pair towards 1.6391(Lower BB).
Recommendation: Good to sell around 1.6530, with stop loss of 1.6600 and target price of 1.6450
