• EUR/AUD declined on Thursday as Australian dollar was boosted by hawkish comments from its central bank chief.
• RBA Governor Michele Bullock warned that inflation had become increasingly driven by domestic demand, requiring a more "substantial" response from interest rates.
• The is pair heading towards the lower 23.6%fib, as near term direction of the pair is likely to be driven by current price action.
• Technical are bearish, daily RSI is negative at 44, daily momentum studies 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.6664 (5DMA ), any close above will push the pair towards 1.6718 (5DMA).
• Strong support is seen at 1.6559 (23.6%fib ), and break below could take the pair towards 1.6457(Nov 3rd low).
Recommendation: Good to sell on around 1.6630, with stop loss of 1.6740 and target price of 1.6550
