• EUR/AUD declined sharply on Tuesday as higher oil price and upbeat Australian consumer sentiment data boosted Australian dollar across the board.
• The Westpac-Melbourne Institute index of consumer sentiment released on Tuesday rose 5.0% in January, the largest monthly gain since April 2021.
• EUR/AUD drops below the 1.5540(11DMA), slide halts at the 1.5434(38.2% fib),break below will accelerate towards 1.5400 level.
•Technical are bearish, daily RSI is negitive at 38, daily momentum studies 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.5517(50% fib), any close above will push the pair towards 1.5540(11DMA).
• Strong support is seen at 1.5434(38.2% fib) and break below could take the pair towards 1.5383(Lower BB)
Recommendation: Good to sell around 1.5450, with stop loss of 1.5550and target price of 1.5390
