• EUR/AUD declined on Monday as euro attracted sellers on concerns that U.S. policies, including tariffs, under President-elect Donald Trump could threaten growth in the euro zone.
• The common currency has been further pressured by ongoing German political concerns following the collapse of the three-way governing coalition.
• German Chancellor Olaf Scholz over the weekend he would be willing to call a vote of confidence in parliament before Christmas.
• Technical signals are bearish as RSI is at 47, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.6545(Daily high), any close above will push the pair towards 1.6617 (38.2% fib)
• Strong support is seen at 1.6044 (23.6% fib) and break below could take the pair towards 1.594 (Lower BB).
Recommendation: Good to sell on rally around 1.6220 , with stop loss of 1.6230 and target price of 1.6100
