• EUR /AUD slipped below 1.6400 level on Tuesday as Australian dollar continued to gain traction against euro benefited from help provided by iron-ore and gold rally
• Iron ore futures prices continued to rise for a second consecutive session on Tuesday,while gold hit record high on buying momentum, geopolitical risks.
• EUR/AUD chart has taken a turn for the worse after today’s drop.Overall risk is growing for a bigger drop to towards 1.6300 level.
• Technical signals are bearish as RSI is at 35 daily momentum studies 9, 11 and 21 DMAs are trending down.
• Immediate resistance is located at 1.6436 (50% fib), any close above will push the pair towards 1.6446 (5EMA).
• Immediate support is seen at 1.6378 (38.2%fib) and break below could take the pair towards 1.6324(Jan 12th low).
Recommendation: Good to sell around 1.6400, with stop loss of 1.6480 and target price of 1.6320
