• EUR/AUD recovered from earlier losses on Monday as news that Germany did not plan to halt Russian energy imports helped inspire EUR/AUD rebound.
• However, recovery is likely to limited as the inflation worries combined with growth concerns due to Europe's proximity to the Russia-Ukraine crisis is like to weigh on the pair.
• EUR/AUD recovered upwards after hitting daily low 1.4575,the trend lower is still in place while the 5-day MA holds.
• From a technical viewpoint, RSI is strongly bearish at 15, daily momentum studies, 5, 10 and 11 daily MAs are pointing downtrend.
• Immediate resistance is located at 1.4844 (38.2%fib), any close above will push the pair towards 1.4956(5DMA).
• Immediate support is seen at 1.5844 (5DMA) and break below could take the pair towards 1.5817 (38.2%fib).
Recommendation: Good to sell on dips around 1.4850, with stop loss of 1.4960 and target price of 1.4600.
