FxWirePro: EUR/AUD recovers slightly but bearish outlook persists

• EUR/AUD recovered some ground  on Thursdays risk aversion intensified amid  ‌as the Middle East conflict showed no signs of easing .

• The U.S.–Israel war with Iran entered its sixth day after the U.S. Senate blocked a motion to halt the air campaign, as the conflict continued to disrupt regional energy and shipping..

• Europe’s reliance on imported oil and LNG means tighter war-driven supply could raise energy and transport costs as growth remains weak..

•Three policymakers from the European Central Bank warned that euro zone inflation could rise and growth weaken if the war expands to more countries.

. • Technical signals are bearish as RSI is at 37, momentum studies  11,14  and 21 DMAs are trending down. 

• Strong  resistance is located at 1.6655(SMA 20), any close above will push the pair towards 1.6678(38.2% fib)

• Immediate support is seen at 1.6436 (23.6% fib) and break below could take the pair towards 1.6395(Lower BB).

  Recommendation: Good to sell   around 1.6580, with stop loss of 1.6650  and target price of 1.6500