• EUR/AUD declined on Tuesday as higher oil prices and coronavirus vaccine trial success sparked hefty gains in Australian dollar.
• Continued climb in the price of iron ore Australia’s single biggest export earner also supported Aussie bulls.
• The pair is approaching to support at 1.6555 ( 200 DMA). A decisive break closure below could generate further downside pressure.
• Technical signals are bearish as RSI is at 42, momentum studies 5, 9 and 11 DMAs are trending down.
• Immediate resistance is located at 1.6881 ( 100 DMA), any close above will push the pair towards 1.6938 (23.6% fib)
• Strong support is seen at 1.6555 ( 200 DMA) and break below could take the pair towards 1.6470 (Lower BB).
Recommendation: Good to sell around 1.6680, with stop loss of 1.6950 and target price of 1.6500.
