FxWirePro: EUR/AUD dips below lower range, bearish bias increases

• EUR/AUD dipped on Monday  as renewed worries about the U.S. Federal Reserve’s independence weighed on the pair.

•  Investors were spooked after Powell said the Trump administration had sought to intimidate him with criminal charges and subpoenas, calling it a tactic to force the Fed to ease monetary policy.

• Australia’s data docket is thin this week, highlighted by Westpac Consumer Confidence on Tuesday and Consumer Inflation Expectations on Thursday..

•  Investors will keep an eye on China’s trade data this Wednesday, with movements in exports and imports often affecting the Aussie because of Australia’s close relationship with China.

• Technical signals are bearish as RSI is at 36, momentum studies  11,14  and 21 DMAs are trending down. 

• Strong  resistance is located at 1.7487(38.2% fib), any close above will push the pair towards 1.7543 (SMA 20)

• Immediate support is seen at 1.7319 (23.6% fib) and break below could take the pair towards 1.7214 (Lower BB).

  Recommendation: Good to sell   around 1.7400, with stop loss of 1.7480 and target price of 1.7330