FxWirePro:EUR/AUD struggle to extend its recovery,good to sell on rally

EUR/AUD initially rose on Wednesday, but later lost  some ground as the euro struggled to maintain strength amid firm expectations that the  ECB  will cut rates before the Fed.

•The European Central Bank has signalled its intention to cut in June, assuming the data points in the right direction.

• At GMT 17:28, the pair was trading up 0.25 percent  at 1.6337 after reaching daily high at 1.6382.

•  Technical signals are bearish as RSI is heading down  at 40, daily momentum studies  5, 9 and 11 DMAs are trending down. 

• Immediate resistance is located at 1.6382 ( 38.2% fib), any close above will push the pair towards 1.6438 (May 2nd High ).

•  Support is seen at 1.6295 (Daily low) and break below could take the pair towards 1.6226 (23.6%fib).

Recommendation: Good to sell on rally around 1.6340, with stop loss of 1.6430 and target price of 1.6260