• EUR/AUD declined on Thursday as worsening gas crisis in Europe and ECB-Fed policy divergence weighed on euro.
• Strong support is at 1.4851,a break below will encourage fresh selling and accelerate downtrend.
• Technical signals are bearish as RSI is at 40, daily momentum studies 5, 9 and 10 DMAs are trending south.
• Immediate resistance is located at 1.5015( 5DMA), any close above will push the pair towards 1.5121(38.2% fib)
• Strong support is seen at 1.4851 (23.6%fib) and break below could take the pair towards 1.4769 (June 7th low).
Recommendation: Good to sell on rally around 1.4870, with stop loss of 1.4950 and target price of 1.4800.
