• EUR/AUD strengthened on Monday but gains were limited as market seeked fresh factors for further direction.
• EUR/AUD traded as high as 1.6540 before retreating slightly to trade at 1.6522 .
• EUR/AUD remains below 5DMA),daily close below 1.6460 (38.2% fib) will increase the scope for much bigger drop.
• Technical signals are bearish as RSI is at 43, daily momentum studies 5, 9 and 14 DMAs are trending south.
• Immediate resistance is located at 1.6540(38.2%fib ), any close above will push the pair towards 1.6562(Nov 2nd high).
• Strong support is seen at 1.6460 (38.2% fib) and break below could take the pair towards 1.6402 (Oct 2nd low).
Recommendation: Good to sell around 1.6530, with stop loss of 1.6600 and target price of 1.6450
