• EUR/AUD declined on Wednesday as global investors hunted for higher-yielding Australian dollar.
• EUR/AUD dived below the 38.2% fib and trades down to a 1.5979 low.
• FX traders are snapping up riskier assets as 2021 approaches, AUD demand could grow in the New Year.
• Technical signals show the pair could lose more ground in the short-term as RSI is at 40, daily momentum studies 9, 10 and 11 DMAs are trending down.
• On the upside, Immediate resistance is located at 1.6049 ( 38.2% fib), any close above will push the pair towards 1.6109 (50%fib)
• On the downside, support is seen at 1.5979 (23.6% fib ) and break below could take the pair towards 1.5900(Psychological level).
Recommendation: Good to sell around 1.6000, with stop loss of 1.6100 and target price of 1.5900.
