• EUR/AUD held near recent lows on Monday as trading was subdued ahead of Reserve Bank of Australia policy decision.
•Investors awaited RBA's knife-edge taper decision on Tuesday at 0430GMT, RBA is likely to leave the cash rate at 0.1%, but are split on whether the central bank will delay tapering plans.
• Technical signals are bearish as RSI is at 42, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.5989 ( 5 DMA), any close above will push the pair towards 1.6042 (38.2 % fib)
• Support is seen at 1.5920(23.6% fib) and break below could take the pair towards 1.5842 (Lower BB).
Recommendation: Good to sell on rally around 1.5990, with stop loss of 1.6080 and target price of 1.5870.
