• EUR / AUD fell on Thursday as riskier currencies like the Australian dollar continued to gain cautious hope that the coronavirus pandemic would peak.
• In addition to the hope of a peak in the epidemic, commodity currencies, such as the Australian dollar, have received an additional boost from the hope that major oil-producing countries could agree to reduce their production.
• At 3:12 p.m. GMT, the pair was trading 0.38% to $ 1.7350, after hitting the session low at 1.7306.
• The selling pressure will remain in the short term, only a movement above 1.7641 (5 DMA) of strong resistance would indicate that the weakness of the pair is exhausted.
• Daily and monthly RSI, although oversold, implies that the bearish momentum is intact. The MACD is also evolving with a stronger negative dynamic.
• On the upside, the immediate resistance is at 1.7513 (highest of the day), any close above will push the pair towards 1.7641 (5 DMA)
• On the downside, the immediate support is observed at 1.7300 (lowest of the day) and a break below could bring the pair towards 1.7157 (lower BB).
Recommendation: Good for rally rally around 1.7400, with a stop loss of 1.7600 and a target price of 1.7000.