• EUR/AUD declined on Wednesday as weak German retail sales and slowing factory activity in the euro zone triggered sell off in the pair.
•Euro zone PMI manufacturing weakened and German retail sales took an unexpected 5.4% April tumble as the region tried to manage the damage from dwindling usage of Russian energy supplies and Ukraine war fallout.
• The pair is currently approaching resistance at 23.6%fib. A break and daily close below will accelerate further downside towards 1.4750 level.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 59 bullish, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.4976 (9DMA), any close above will push the pair towards 1.5064 (38.2%fib).
• Strong support is seen at 1.4822(23.6%fib) and break below could take the pair towards 1.4749 (Ichimoku Cloud Base ).
Recommendation: Good to sell around 1.4860 with stop loss of 1.4970 and target price of 1.4750
