• EUR/AUD initially fell on Thursday but gained some ground as hopes of a swifter global economic recovery and an upbeat sentiment in Italy politics offered support to falling euro.
• Rallies in EUR/AUD are being capped as sentiment is negative about euro-specific issues such as the EU vaccine rollout and Italian politics.
• At GMT 15:25, the pair was trading 0.18% lower at 1.5768, after hitting daily low at 1.5705.
• Technical signals show the pair could lose more ground in the short-term as RSI is at 45 bearish, daily momentum studies 5, 10 and 21 DMAs are trending south.
• Immediate resistance is located at 1.5794( 38.2%fib), any close above will push the pair towards 1.5874 ( Higher BB)
• Support is seen at 1.5707 (Daily low) and break below could take the pair towards 1.5623 (23.6%fib).
Recommendation: Good to sell around 1.5770, with stop loss of 1.5900 and target price of 1.5680
