• EUR/AUD declined on Friday as the pair was weighed down by fears about a global recession and UK political unrest.
• EUR/AUD fell as investors fretted about inflation and the economic effects of central banks' efforts to rein it in, with possible recession lurking on the horizon.
• EUR/AUD is now on course to register a close below the 38.2% fib support, chart points to bigger drop towards 1.5350.
• Bias remains on downside, as the tenkan and kijun lines are negative aligned. 14-day momentum has turned negative ,reinforcing bearish market
• Immediate resistance is located at 1.5548( 9DMA), any close above will push the pair towards 1.5687 (23.6% fib)
• Strong support is seen at 1.5424 (38.2% fib) and break below could take the pair towards 1.5218(21DMA).
Recommendation: Good to sell on rally around 1.5430, with stop loss of 1.5500 and target price of 1.5320.
