• EUR/AUD recovered some ground after initially falling on Friday as the pair was aided by profit-taking on shorts.
• EUR/AUD bulls must regain the 1.5641 ( 5DMA) to stem the bearish tide and a rise above the 1.5703(38.2%fib) to regain momentum.
• Technical signals are bearish as RSI is at 34, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.5619 ( 38.2%fib), any close above will push the pair towards 1.5641 ( 5DMA).
• Strong support is seen at 1.5514 (23.6% fib) and break below could take the pair towards 1.5462(Lower BB).
Recommendation: Good to sell on rally around 1.5590, with stop loss of 1.5680 and target price of 1.5500.
