• EUR/AUD declined on Tuesday as a renewed decline in oil prices overshadowed optimism about the easing of coronavirus-related restrictions.
• The pair, already trading lower on the day, extended its drop to hit 1.6685, lowest since March 5th2020, it was last down 0.36% on the day.
• EUR/AUD looks set for an eventual close under the 200 DMA,a close under 200 DMA would expose the pair towards 1.6300.
• Technical signals show the pair could lose more ground in the short-term as RSI is at 32 bearish, daily momentum studies 9, 10 and 11 DMAs are trending down.
• On the upside, Immediate resistance is located at 1.6886 ( 5 DMA), any close above will push the pair towards 1.6976 (23.6% fib).
• Support is seen at 1.6530 (200 DMA) and break below could take the pair towards 1.6296 (Lower BB).
Recommendation: Good to sell on rallies around 1.6700, with stop loss of 1.8000 and target price of 1.7350.
