FxWirePro: EUR/AUD drifts lower,could be on verge of a bigger drop

• EUR/AUD declined on Friday as 2-year Bund-Treasury yields spreads, a proxy for ECB-Fed policy pricing, fell to its most negative since November 2020. 

• Euro also was  weighed down on fears that  Russia-Ukraine tense situation was set to escalate, resulting in risk-averse trade favoring the dollar and  yen over the euro.

• The pair is approaching 38.2%fib support,a daily close below   will accelerate towards 1.5600 in the short term.

 • From a technical viewpoint, the moving averages are pointing downwards, while the RSI  is strongly bearish at 44.

• Immediate resistance is located at 1.5826 (50%fib), any close above will push the pair towards 1.5866 ( 9DMA).

• Strong support is seen at 1.5710 (38.2%fib) and break below could take the pair towards 1.5644(Lower BB).

Recommendation: Good to sell around 1.5770, with stop loss of 1.5900 and target price of 1.5650.