FxWirePro:EUR/AUD close below key fibo adds to the bearish bias, good to sell on rally
• EUR/AUD declined on Monday as rally in commodity prices spurred flows into Australian dollar
• Australian inflation data is due on Wednesday and is likely to set the tone for Australian dollar. Economists polled expect Australian CPI to show a 1.8% year-on-year for the third quarter.
• Technical signals are bearish as RSI is heading down at 30, daily momentum studies 5, 9 and 11 DMAs are trending down.
• Immediate resistance is located at 1.5594 ( 38.2%fib), any close above will push the pair towards 1.5627 (14 DMA)
• Strong support is seen at 1.5460 (23.6 %fib ) and break below could take the pair towards 1.5360(Lower BB).
Recommendation: Good to sell on rally around 1.5520, with stop loss of 1.5630 and target price of 1.5430.