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FxWirePro: EUR/AUD hits 1-year, scope for further downside

• EUR/AUD hit one-year  low on Monday as the escalating conflict in the Middle East led to a global selloff.

• The U.S.-Israeli air campaign broadened the conflict across the region as it hit Iran and prompted Tehran to fire missiles and drones at Israel, Gulf states and a British base in Cyprus, after a weekend attack killed Iran’s Supreme Leader Ayatollah Ali Khamenei.

• The Pentagon played down fears of an open-ended conflict, while President Donald Trump warned that a “big wave” in the war was still to come.

• Technical signals are bearish as RSI is at 27, momentum studies  11,14  and 21 DMAs are trending down. 

• Strong  resistance is located at 1.6700(38.2%fib), any close above will push the pair towards 1.6712 (SMA 20)

• Immediate support is seen at 1.1656 (23.6% fib) and break below could take the pair towards 1.6393 (Lower BB).

  Recommendation: Good to sell   around 1.6480, with stop loss of 1.6560  and target price of 1.6400
 

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