• EUR/AUD initially gained on Friday but gave ground as Italian political risk and energy supply crunch Europe in weighed on euro.
. The euro zone grappled with a deepening energy crisis as Russia shut down a gas pipeline for a week for regular maintenance.
• EUR/AUD failed to break resistance at 1.4921 and dipped to trade at 1.4846. A close below 1.4846 (38.2%fib) will opens up 1.4700 level.
• Immediate resistance is located at 1.4859 ( 5DMA), any close above will push the pair towards 1.4921 (38.2%fib).
• Strong support is seen at 1.4846 (38.2%fib) and break below could take the pair towards 1.4668(Lower BB).
Recommendation: Good to sell around 1.4850, with stop loss of 1.4960 and target price of 1.4780