• EUR/AUD languished near one month low on Friday as high energy costs, rising inflation and recession kept bearish pressure on the pair.
• EUR/AUD sinks near 1.4815 then sits near 1.1860 late in US trading.
• Pair traded in a quiet 1.4903/1.4813 range. Inability to bounce despite sharp decline this week is a sign of weakness.
• Technical signals are bearish as RSI is at 39, daily momentum studies 10,11 and 14 DMAs are trending down.
• Immediate resistance is located at 1.4925( 50%fib), any close above will push the pair towards 1.4997 (5DMA)
• Support is seen at 1.4185 (23.6% fib ) and break below could take the pair towards 1.4476 (Lower BB).
Recommendation: Good to sell around 1.4850, with stop loss of 1.4930 and target price of 1.4770.
