• EUR/AUD declined on Monday, as US-China tensions weighed on euro and downward pressure is likely to remain.
• The pair is currently approaching support at 1.6972 (23.6% fib ). A break would further accelerate downward pressure.
• Technical signals are bearish as RSI is at 45, momentum studies 21, 30 0 DMAs are trending down.
• On the upside, Immediate resistance is located at 1.7242 ( 9 DMA), any close above will push the pair towards 1.7401 ( 30 DMA).
• On the downside, strong support is seen at 1.6972 (23.6% fib ) and break below could take the pair towards 1.6849 (5 DMA).
Recommendation: Recommendation: Good to sell on rally around 1.7020, with stop loss of 1.7400 and target price of 1.6700.
