• EUR/AUD recovered some ground on Thursday as traders adjusted their positions ahead of U.S. inflation data.
• Investors focus shifted to US CPI data and michigan sentiment on Friday, FOMC on Wednesday,
• The pair is currently approaching resistance at 1.5822 (5DMA). A clean and sustained break below 1.5757 (38.2%fib ) will increase bearish pressure on the pair.
• Technical signals are bearish as RSI is at 49, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.5832( 14DMA), any close above will push the pair towards 1.5874(50 % fib),
• Support is seen at 1.5757 (38.2%fib ) and break below could take the pair towards 1.5674(50DMA).
Recommendation: Good to sell on rally around 1.5820, with stop loss of 1.5900 and target price of 1.5760.
