• EUR/AUD initially gained on Friday but gave up ground as Fed-ECB policy divergence and rising Omicron fears allowed investors to unwind long positions .
• Traders are comparing changing interest rates across currencies as central banks go at different speeds to adjust monetary policies in the face increasing inflation and the Omicron threat.
• Bulls will need a clear 1.5844( 38.2% fib) to take greater control, failure to break higher will spur fresh downward momentum.
• Technical signals are bearish as RSI has turned lower, moving averages 9 and 11 DMA’s are trending lower
• Immediate resistance is located at 1.5790( 9DMA), any close above will push the pair towards 1.5844 ( 38.2% fib).
• Immediate support is seen at 1.5754 (50%fib) and break below could take the pair towards 1.5657(61.8%fib).
Recommendation: Good to sell around 1.5850, with stop loss of 1.5960 and target price of 1.5780
