• EUR/AUD initially dipped but recovered some ground as investors tried to balance ECB and geopolitical risks.
• EUR/AUD erased some losses following surprise in Germany's February Ifo reinforced investor expectations that the ECB will begin tightening policy and hiking rates.
• EUR/AUD failed to break support at 1.5578, bounced toward 1.5650, a daily close below
1.5578 (23.6%fib ) will accelerate further downside
• Technical signals show the pair could lose more ground in the short-term as RSI is at 33 bearish, daily momentum studies 9, 10 and 11 DMAs are trending down.
• Immediate resistance is located at 1.5676 (38.2%fib), any close above will push the pair towards 1.5751 (9DMA)
• Support is seen at 1.5578 (23.6%fib ) and break below could take the pair towards 1.5500 (Psychological level).
Recommendation: Good to sell on rally around 1.5650, with stop loss of 1.5760 and target price of 1.5570.
