FxWirePro: EUR/AUD recovers but bearish outlook persists

• EUR/AUD strengthened  on Thursday as  pullback in metals  weighed on Australian dollar.

•  Commodity prices fell on Thursday, led by a sharp drop in silver, as investors unwound earlier safe-haven positions following an easing in global geopolitical tensions..

•  Silver tumbled as much as 15%, while oil prices dropped more than $1 per barrel after the United States and Iran agreed to hold talks, easing fears of an immediate escalation in tensions.

•  Precious metals have been volatile in recent sessions, with gold and silver posting their steepest losses in decades last Friday after hitting record highs..

• Meanhwhile,  European Central Bank kept interest rates unchanged on Thursday, in line with expectations, and downplayed the influence of recent dollar movements on its policy outlook

• Strong  resistance is located at 1.7043(38.2% fib), any close above will push the pair towards 1.7170 (SMA 20)

• Immediate support is seen at 1.6849 (Feb 5th low) and break below could take the pair towards 1.6781 (Lower BB).

  Recommendation: Good to sell   around 1.7040, with stop loss of 1.7140 and target price of 1.6900