• EUR/AUD declined on Monday as euro was weighed down on ECB rate cut expectation and stronger Australian dollar .
• ECB President Christine Lagarde stated last week that the bank plans to lower interest rates soon, provided there are no major unforeseen events.
• The pair currently is approaching support at 1.6512(38.2% fib ). A break under 1.6512 would unmask 1.6460 level in the short term.
• 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 1.6530 ( 9 EMA), any close above will push the pair towards 1.6552 (50% fib)
• Support is seen at 1.6512(38.2% fib ) and break below could take the pair towards 1.6464 (23.6% fib).
Recommendation: Good to sell around 1.6540, with stop loss of 1.6650 and target price of 1.6450.
