FxWirePro: EUR/AUD downside pressure builds, key support level in focus

• EUR/AUD dipped  on Thursday   as   investors awaited progress on U.S.-Iran peace negotiations.

• Investors continued to monitor headlines for signs of progress in U.S. negotiations with Iran to end the war. 

• Meanwhile, data indicated that the conflict is weighing on European businesses, with France’s private sector contracting in May at its fastest pace in over five years, while Germany’s private sector also contracted for a second consecutive month.

• The case for a European Central Bank rate hike in June is almost fully priced in, though the central bank is likely to remain cautious and noncommittal about any further moves.

• Money markets currently price in more than two rate hikes from the ECB before year-end.
 
•  Immediate resistance is located at 1.6374(38.2%fib), any close above will push the pair towards 1.6442(SMA 20)

• Support is seen at 1.6132(23.6%fib) and break below could take the pair towards 1.6092(Lower BB).

Recommendation: Good to sell   around 1.6260, with stop loss of 1.6360 and target price of 1.6200