• EUR/AUD declined on Thursday as bounce in iron ore prices boosted the commodity-linked Australian dollar.
• Iron ore futures rose on Thursday to their highest levels in three weeks on hopes of a recovery in Chinese demand for the steelmaking
• At GMT 19:24, the pair was trading down 0.52 percent at 1.6012.
• Technical signals are bearish as RSI is heading down at 44, daily momentum studies 5, 9 and 1 DMAs are trending down.
• Immediate resistance is located at 1.6066 ( 38.2%fib), any close above will push the pair towards 1.6139 (50%fib)
• Strong support is seen at 1.5978 (23.6 %fib ) and break below could take the pair towards 1.5942 (Lower BB).
Recommendation: Good to sell around 1.6020, with stop loss of 1.6100 and target price of 1.5930.
