• EUR/AUD declined on Wednesday as euro was hurt by the risk aversion as well as concerns over slow growth in the euro zone.
• ECB Vice-President Luis de Guindos said the central bank is not almighty in boosting euro zone growth, as the weakness is mainly due to structural issues rather than just monetary factors
• Meanwhile in its annual Financial Stability Review, ECB pointed out that growing geopolitical tensions and policy uncertainties are increasing risks to sovereign stability.
• Technical signals are bearish as RSI has turned sharply lower, daily momentum studies 5, 9 and 1 DMAs are trending down.
• Immediate resistance is located at 1.6252(50 %fib), any close above will push the pair towards 1.6312(61.8%fib)
• Support is seen at 1.6192 (38.2 %fib ) and break below could take the pair towards 1.6111(23.6 %fib).
Recommendation: Good to sell around 1.6210 , with stop loss of 1.6320 and target price of 1.6130.
