• EUR /AUD slipped lower on Monday as Australian dollar supported by higher iron ore prices.
• Iron ore futures surged on Monday, reaching their peak in nearly a fortnight, driven by optimism surrounding potential initiatives aimed at strengthening the struggling steel sector in China, the world's leading consumer of steel.
• The pair hit daily low at 1.6414 and was last trading at 1.6436.
• Technical signals are bearish as RSI is at 38 daily momentum studies 9, 11 and 21 DMAs are trending down.
• Immediate resistance is located at 1.6475 (50% fib), any close above will push the pair towards 1.6497 (9EMA).
• Immediate support is seen at1.6412 (38.2%fib) and break below could take the pair towards 1.6326(23.6%fib).
Recommendation: Good to sell around 1.6440, with stop loss of 1.6560 and target price of 1.6360
