The Australian dollar held near four-month highs against a soggy euro as expectations of further easing by the ECB underpinned demand for carry trades.
- EUR/AUD dropped to 1.4696, its lowest since July, after shedding 1.5 percent on Friday, and was last trading at 1.4782 after paring some of Friday's losses
- The pair has retraced over 50 % Fibo of the 1.3677 to 1.6584 (Apr to Aug rise), momentum studies, 5, 10 & 20 DMA's trend south - bearish setup in place
- A sustained break under 1.4695 could see a retracement all the way to 1.4400 with little chart support seen until then
- 200 DMA at 1.4797 which gave way on Friday is now the initial resistance ahead of 1.4869 (5 DMA)
Recommendation: Good to sell rallies around 1.4790, SL: 1.4870, TP: 1.4400
