• EUR/AUD gained on Friday as escalating concerns that the conflict with Iran could intensify drove a risk-off tone, weighing on Australian dollar.
• Trump extended a deadline for Iran to reopen the Strait of Hormuz, but Iran has given no direct indication that it was ready to negotiate.
• Iran’s Islamic Revolutionary Guard Corps reiterated it would continue to disrupt shipping through the strait, which is used to ship roughly one-fifth of the world's oil and gas supply..
• Brent crude futures rose 4.22% to settle at $112.57 a barrel. U.S. West Texas Intermediate futures settled up 5.4% at $99.64
• Technically, the outlook remains bullish, with the pair trading above its 5-, 9- and 10 day moving averages. Momentum indicators such as RSI continue to point higher
• Strong resistance is located at 1.6777 (Daily high), any close above will push the pair towards 1.6850 (Higher BB)
• Immediate support is seen at 1.6587 (38.2%fib) and break below could take the pair towards 1.6449(SMA 20).
Recommendation: Good to buy around 1.6750 with stop loss of 1.6680 and target price of 1.6810
