• EUR/AUD declined on Thursday, as spike in coronavirus patients and deaths in Hubei province weighed on euro.
• At GMT 17:00, the pair was trading down 0.12 percent at $1.6118, after being compressed earlier in the session to a month trough of $1.6080.
• Selling pressure will remain in the short-term, only a move above 1.6285 ( 50 % fib) strong resistance would indicate the weakness in Euro has run out.
• Daily, monthly RSIs, although being oversold, imply bearish momentum is intact. The MACD is also moving with a stronger negative momentum.
• On the upside, Immediate resistance is located at 1.6208 ( 38.2% fib), any close above will push the pair towards 1.6300 (50% fib)
• On the downside, support is seen at 1.6079 (Daily low) and break below could take the pair towards 1.6023 (Lower BB).
Recommendation: Good to sell on rally around 1.6200, with stop loss of 1.6280 and target price of 1.6000.
