• EUR/AUD initially gained on Tuesday but gave up some of the ground the euro was dented by moderating inflation data.
• Data showed German inflation eased last month due to falling energy prices and the government's one-off payment of household energy bills.
• EUR/ AUD approached to test resistance 1.5705(5DMA) but retreated as bulls lost strength.
• Technical signals show the pair could lose more ground as RSI is at 49 bearish, and 9, 11,21 DMA’s are trending south.
• Immediate resistance is located at 1.5705(5DMA), any close above will push the pair towards 1.5765 (38.2% fib).
• Strong support is seen at 1.5610(50% fib) and break below could take the pair towards 1.5565 (50DMA).
Recommendation: Good to sell around 1.5680, with stop loss of 1.5650 and target price of 1.5580
