• EUR/AUD strengthened on Wednesday but upside was limited as investors awaited Thursday’s ECB meeting.
• The pair is currently approaching resistance at 1.6081 (38.2% fib). Failure to break 1.6081 would suggest waning momentum.
• Technical signals are bearish as RSI is at 48, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.6081 (38.2% fib), any close above will push the pair towards 1.6184 (50 % fib)
• Support is seen at 1.5964 (23.6% fib) and break below could take the pair towards 1.5884 (Lower BB).
Recommendation: Good to sell around 1.6050, with stop loss of 1.6150 and target price of 1.5970.
