• EUR/AUD initially strengthened on Thursday after ECB hike but reversed course after comments by ECB President Christine Lagarde.
• ECB President Christine Lagarde said the bank was accelerating its exit from negative interest rates but not changing the ultimate point of arrival.
• Bearish signals are increasing after todays drop.Pair falls sharply below the 14-DMA & 38.2%fib retracement level.
• Technical signals are bearish as RSI is at 37, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.4897 ( 14DMA), any close above will push the pair towards 1.5008(38.2%fib)
• Support is seen at 1.4741 (23.6% fib ) and break below could take the pair towards 1.4630 (Lower BB).
Recommendation: Good to sell on rally around 1.4800, with stop loss of 1.4900 and target price of 1.4700.
