FxWirePro: EUR/AUD faces downside risks after falling below key fib level

• EUR/AUD declined on Friday  as investors turned to riskier assets amid renewed optimism over U.S.-China trade resolution.

• China's Commerce Ministry announced that it is evaluating Washington's proposal for talks regarding U.S. President Donald Trump's hefty tariffs.

• This development signalled a potential easing of the trade tensions that have been causing significant volatility in global markets, raising hopes for a de-escalation of the trade war. 

• With the prospect of de-escalating trade tensions between the two largest economies, investors grew more confident, moving away from  currency  like the euro and toward risk sensitive Australian dollar.

• Bearish signals are increasing today after todays drop.Pair falls sharply below the 9-SMA & 38.2%fib retracement level

• Immediate resistance is located at 1.7658 (38.2%fib), any close above will push the pair towards 1.7790 (SMA 14)

• Support is seen at 1.7524(Daily low ) and break below could take the pair towards 1.7334 (50%fib).

  Recommendation: Good to sell on rally around 1.7550, with stop loss of 1.7650 and target price of 1.7400