• EUR/AUD dipped on Monday as the piar attracted sellers ahead of key risk events this week.
• Australia retail sales is due on Tueday, Inflation figures are due on Wednesday, which are likely to reinforce the case of a policy hold from the Reserve Bank of Australia.
• The pair reaches 1.6377 after extending south from 1.6499 (Daily high). 1.6377 is the lowest level since Jan 17th.
• Technical lean bearish 49, RSI is turning sharply lower, momentum studies, 5, and 9 DMAs falling southwards.
• Immediate resistance is located at 1.6483( 50% fib), any close above will push the pair towards 1.6522 (Dec 5th high)
• Strong support is seen at 1.6377(38.2% fib) and break below could take the pair towards 1.6326(Jan 18th low).
Recommendation: Good to sell around 1.6450, with stop loss of 1.6550 and target price of 1.6350
