FxWirePro: EUR/AUD neutral in the near-term, scope for downward resumption

• EUR/AUD fell on Tuesday as investors tempered hopes for a swift resolution to the Middle East conflict, undoing some of Monday’s gains.

• Markets have fluctuated this week, swinging between gains and losses amid rapidly changing rhetoric from Washington and Tehran.

• Eurozone business activity slowed to its lowest level in almost a year in March, with the PMI slipping as the ongoing Iran war stokes fears it will weigh on growth and push up inflation across the European economy.

•S&P Global’s flash Eurozone PMI Composite Output Index showed activity in manufacturing and services dropping from 51.9 in February to 50.5 in March.

• Strong  resistance is located at 1.6663(38.2%fib), any close above will push the pair towards 1.6873(50%fib)

• Immediate support is seen at 1.6432 (23.6% fib) and break below could take the pair towards 1.6381(Lower BB).

  Recommendation: Good to sell   around 1.6630, with stop loss of 1.6700 and target price of 1.6560