FxWirePro: EUR/AUD edges higher but bearish outlook persists

• EUR/AUD   edged higher  on Thursday  as risk-sensitive Australian dollar eased amid renewed worries about the Iran war.

•  Concerns  returned after Iran on Wednesday seized two ships trying to exit the Strait, leaving investors wondering if the fragile ceasefire with the U.S. that has allowed markets to rebound in recent weeks will be able to hold.

• German data showed that its private sector shrank for the first time in almost a year and business activity in the euro zone as a whole suffered a surprise contraction.

• In France, activity dropped at its fastest pace in 14 months and factory orders expanded for the first time in almost four years - a clear sign, analysts said, that firms are rushing to try to avoid shortages and price increases.

•  Immediate resistance is located at 1.6425 ( 38.2%fib), any close above will push the pair towards 1.6544 (SMA 20)

• Support is seen at 1.6285(Lower BB) and break below could take the pair towards 1.6172(23.6%fib).

Recommendation: Good to sell   around 1.6380, with stop loss of 1.6460 and target price of 1.6300