• EUR/AUD declined on Thursday as Australian dollar gained ground against euro as traders mull higher for longer RBA rate stance.
• RBA rate expectations diverge from those of other major central banks,markets now do not expect a RBA rate cut until April next year.
• The pair currently is approaching support at 1.6348. A break below would unmask 1.6200 level in the short term.
• Technical signals are bearish as RSI is at 41, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.6348 (38.2%fib), any close above will push the pair towards 1.6386 (May 8th high)
• Support is seen at 1.6280(23.6% fib ) and break below could take the pair towards 1.6214 (Lower BB).
Recommendation: Good to sell on rally around 1.6310, with stop loss of 1.6400 and target price of 1.6240
