• EUR/AUD declined on Tuesday as Australian dollar was supported by another hawkish steer from RBA chief Bullock
• Australia's top central banker on Tuesday reaffirmed that monetary policy in Australia was restrictive and working to dampen demand, though inflation in the service sector was proving sticker than hoped.
• EUR/AUD chart has taken a turn for the worse after todays drop.Overall risk is growing for a bigger drop towards 1.6450.
• From a technical viewpoint, the moving averages are pointing downwards, while the RSI is bearish at 40.
• Immediate resistance is located at 1.6578 (38.2%fib), any close above will push the pair towards 1.6643 ( 9DMA).
• Strong support is seen at 1.6517 (Daily low) and break below could take the pair towards 1.6468 (23.6%fib).
Recommendation: Good to sell around 1.6530, with stop loss of 1.6630 and target price of 1.6450
