• EUR/AUD initially gained but gave up most of the ground as markets kept a close watch on Middle East developments and the inflationary impact of surging oil prices.
• Markets also weighed a report saying the U.S. had accepted a temporary waiving of sanctions on Iranian crude.
• Tehran sent a new peace proposal with terms that appeared similar to offers previously rejected by Washington, although an Iranian official said the United States had softened its stance on some issues.
• Hopes of progress in negotiations lifted risk appetite, limiting crude oil upside and reducing demand for the safe-haven dollar.
• Immediate resistance is located at 1.6290(SMA 20), any close above will push the pair towards 1.6383(38.2%fib)
• Support is seen at 1.6113( 23.6%fib) and break below could take the pair towards 1.6071(Lower BB).
Recommendation: Good to sell around 1.6260, with stop loss of 1.6360 and target price of 1.6150
