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FxWirePro: EUR/AUD retreat from early gains, eyes another drop

• EUR/AUD retreated  on Friday  as investors remained cautious about developments in the Middle East. 

• Negotiators are considering a phased agreement to wind down the war under which Tehran would reopen the Strait of Hormuz while Washington lifts its economic blockade against Iran, according to sources familiar with the talks.

• Oil prices edged lower as markets weighed hopes for a U.S.-Iran truce against concerns over Houthi attacks on Saudi Arabia, while crude remained on track for a weekly gain of more than 2%.

• Money markets priced the European Central Bank’s deposit rate at 2.84% by December, implying one 25-basis-point rate hike with a possibility of a second move.

• Immediate resistance is located at 1.6229(38.2%fib), any close above will push the pair towards 1.6269(Higher BB).

• Immediate support is seen at 1.6158(SMA 20) and break below could take the pair towards 1.6087(23.6%fib)
    
Recommendation: Good to sell around 1.6230, with stop loss of 1.6350 and target price of 1.6150
 

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