• EUR/AUD declined on Monday as increased risk appetite and higher commodities prices boosted Australian dollar ahead of Australian retail sales data.
• Investors will be closely monitoring Australian retail sales data, which is set to be released on Tuesday. Economists are projecting a modest increase of 0.1% in retail sales for April, following a 0.4% decline in March.
• Retail sales data is significant as it provides insights into consumer spending and economic health in Australia.
• Technical signals are bearish as RSI is heading down at 34, daily momentum studies 5, 9 and 11 DMAs are trending down.
• Immediate resistance is located at 1.6360 ( 38.2% fib), any close above will push the pair towards 1.6405(50% fib)
• Support is seen at 1.6302(23.6%fib ) and break below could take the pair towards 1.6254( (May 22nd low).
Recommendation: Good to sell on rally around 1.6330, with stop loss of 1.6450 and target price of 1.6220
