• EUR/AUD dipped on Friday as the mood remained bearish amid rising rising concerns about inflation and interest rate hikes.
• The European Central Bank confirmed on Thursday that it will hike interest rates by 25 basis points at its July meeting. The bank also said that it expects a further hike in September.
• The pair dropped quickly to test 1.4799(23.6% fib) support and recovered towards 1.4925. Daily close below 23.6% fib support will increase further downtrend .
• Immediate resistance is located at 1.4960 ( 30DMA), any close above will push the pair towards 1.5005 (50% fib)
• Support is seen at 1.4799(23.6% fib) and break below could take the pair towards 1.4738 (Lower BB).
Recommendation: Good to sell around 1.4925, with stop loss of 1.5100 and target price of 1.4800.
