• EUR/AUD dipped on Thursday as improving global risk sentiment and a softer USD backdrop supported Australian dollar.
• Risk appetite remains supported despite tensions, with Israel reportedly seeking talks with Lebanon after earlier actions threatened the U.S.–Iran ceasefire.
• Focus shifts to RBA Deputy Governor Andrew Hauser’s speech in New York, which could provide further policy signals and act as a catalyst for AUD direction. Hawkish commentary in the past has supported the currency by reinforcing rate hike expectations.
. • Technical signals are bearish as RSI is at 43, momentum studies 11,14 and 21 DMAs are trending down.
• Strong resistance is located at 1.6587(50% fib), any close above will push the pair towards 1.6794(61.8% fib)
• Immediate support is seen at 1.6380(38.2% fib) and break below could take the pair towards 1.6250(Lower BB).
Recommendation: Good to sell around 1.6530, with stop loss of 1.6650 and target price of 1.6460
