• EUR/AUD declined on Thursday as a further reduction in gas flows from Russia weighed on the pair.
• The pair is approaching support at 1.4495 (23.6% fib), subsequent weak closings below will put further pressure on the pair.
• A first reading of July inflation for the wider euro zone is due on Friday. Consumer price growth in the 19 countries sharing the euro was a record-high 8.6% year-on-year in June.
• Immediate resistance is located at 1.4598 ( 5DMA), any close above will push the pair towards 1.4661 (38.2% fib)
• Strong support is seen at 1.4495 (23.6% fib) and break below could take the pair towards 1.4399 (Lower BB).
Recommendation: Good to sell on rally around 1.4570, with stop loss of 1.4670 and target price of 1.4500.
