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• EUR/AUD peaked higher on Tuesday as investors struggled with direction as increased COVID-19 infections fueled risk-off sentiment.
• Pair climbs above 1.6700 and holds near the day's high late in US session.
• EUR/AUD outlook remains bleak, despite recent recovery attempts. Only a break and close above 23.6% fib at 1.6963, will shift the bias higher
• Technicals are favouring bearish sentiment as RSI is at 41 and the pair is trading below 11 & 21-DMAs.
• On the upside, Immediate resistance is located at 1.6772 ( 11DMA), any close above will push the pair towards 1.6915 (21 DMA).
• On the downside, support is seen at 1.6600 (Daily low) and break below could take the pair towards 1.6479 (Lower BB).
Recommendation: Good to sell on rallies around 1.6850, with stop loss of 1.6970and target price of 1.6500.
