FxWirePro- Currency Strength Index (4- Hour chart)- Currency pairs to watch (EURJPY and EURAUD) for the day)
FxWirePro:EUR/AUD downside pressure builds, key support level in focus
• EUR/AUD declined on Thursday as pair attracted seller after the comments from the Fed officials reaffirming the need for further rate hikes.
• Fed minutes said the central bank will continue raising interest rates in the coming months in order to combat inflation.
• Technical signals are bearish as RSI is heading down at 44, daily momentum studies 5, 9 and 1 DMAs are trending down.
• Immediate resistance is located at 1.4670 ( 30 DMA), any close above will push the pair towards 1.4744(Higher BB)
• Strong support is seen at 1.4565 (23.6 %fib ) and break below could take the pair towards 1.4420(Lower BB).
Recommendation: Good to sell on rally around 1.4590, with stop loss of 1.4670 and target price of 1.4510.