• EUR/AUD declined on Monday as commodity linked Australian dollar was boosted by higher oil prices.
• Easing of lockdown regulations in Australia and higher gold prices also helped commodity- Australia.
• Selling pressure will remain in the short-term, only a move above 1.6981(23.6% fib) strong resistance would indicate the weakness in pair has run out .
• Technical signals are bearish as RSI is at 43, daily momentum studies 5, 9 and 10 DMAs are trending down.
• On the upside, Immediate resistance is located at 1.6881 ( 100 DMA), any close above will push the pair towards 1.6981(23.6% fib)
• On the downside, support is seen at 1.6555 ( 200 DMA) and break below could take the pair towards 1.6470 (Lower BB).
Recommendation: Recommendation: Good to sell around 1.6700, with stop loss of 1.6990 and target price of 1.6500.
