• EUR/AUD edged higher, but the gains were limited as investors took the opportunity to book profits following a three-day decline.
• Focus is now shifting to Federal Reserve Chairman Jerome Powell, who is set to speak at the central bank’s crucial annual meeting in Jackson Hole, Wyoming, later this week.
• Looking ahead, the broader risk environment is expected to influence market movements leading up to the Jackson Hole symposium.
• 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 1.6598(38.2% fib), any close above will push the pair towards 1.6706 (Jul 31st high)
• Strong support is seen at 1.6449(50% fib) and break below could take the pair towards 1.646 (Lower BB).
Recommendation: Good to sell on rally around 1.6510 , with stop loss of 1.6600 and target price of 1.6550
