FxWirePro: EUR/AUD falls below 1.6600 level, plunge to test a key fibo grows

• EUR/AUD dipped  on Tuesday    as markets reassessed near-term risks after U.S. President Donald Trump said he agreed to suspend bombing and attacks on Iran for two weeks.

• Trump said he has agreed to suspend bombing and attack for two weeks, and the United States had received a 10-point proposal from Iran that he described as a workable basis for negotiations.

•  Higher inflation due to rising energy prices could complicate rate-cut decisions by central banks.

• Eurozone private sector growth slowed in March, with the S&P Global PMI showing the slowest gain in nine months. 

•The Composite PMI fell to 50.7 from 51.9, indicating slower growth. Services activity practically ceased, although manufacturing remained quite resilient.

• Technical signals are bearish as RSI is at 44, momentum studies  11,14  and 21 DMAs are trending down. 

• Strong  resistance is located at 1.6320(23.6% fib), any close above will push the pair towards 1.6447(50%fib)

• Immediate support is seen at 1.6159 (23.6% fib) and break below could take the pair towards 1.6057(Lower BB).

  Recommendation: Good to sell   around 1.6550, with stop loss of 1.6650 and target price of 1.6430