• EUR/AUD declined sharply on Monday as buoyed risk sentiment and rising commodities prices helped Australian dollar .
• Investors are now focused on US employment reports and Fed policy meeting, both of which pose potential risks.
• The pair currently is approaching support at 23.6% fib. A break under would unmask 1.6200 level in the short term.
• Technical signals are bearish as RSI is at 34, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.6558(38.2% fib), any close above will push the pair towards 1.6441(50% fib)
• Support is seen at 1.6288(Daily low ) and break below could take the pair towards 1.6266 (23.6% fib).
Recommendation: Good to sell around 1.6330 with stop loss of 1.6480 and target price of 1.6230.
