• EUR/AUD recovered some ground on Tuesday as investors prepared for U.S. inflation data and ECB meeting later in the week.
• EUR/AUD was generally is in a holding pattern before the European Central Bank meeting on Thursday and the release of US inflation data.
• The pair is currently approaching resistance at 1.5745 (38.2% fib). Resistance at 1.5745 is likely to cap further upside in the pair.
• Technical signals are mixed as RSI is at 55, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.5745 ( 38.2%fib), any close above will push the pair towards 1.5842 (June 4th high)
• Strong support is seen at 1.5705 (21 DMA ) and break below could take the pair towards 1.5662 (50% fib).
Recommendation: Good to sell on rally around 1.5740, with stop loss of 1.5860 and target price of 1.5680.
