• EUR/AUD declined on Thursday as profit-taking on longs weighed on the cross pair.
• At GMT 17:59, the pair was trading 0.80% lower at 1.6430 , slightly higher from session low at 1.6392.
• EUR/AUD managed to move briefly above 1.6500 on Thursday, strength was not sustained and the subsequent sharp retreat sent the pair back below 1.6500.
• Technical lean bearish, RSI is turning sharply lower. While, 21 day Bollinger bands indicating an overbought market.
• On the upside, Immediate resistance is located at 1.6519 ( Daily high), any close above will push the pair towards 1.6583 (38.2%fib).
• On the downside, support is seen at 1.6396 (23.6%fib) and break below could take the pair towards 1.6351 (5 DMA).
Recommendation: Good to sell on rallies around 1.6430, with stop loss of 1.6580 and target price of 1.6300.
