• EUR/AUD declined on Tuesday as the pair came under pressure after the RBA surprised markets with a larger-than-expected 25bp hike.
• EUR/AUD dipped following hawkish guidance, to 1.4721 trading before recovering some of its losses.
• The pair currently is approaching support at 1.7470(23.6% fib). A break under 1.7470 would unmask 1.7300 level in the short term.
• 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 1.7500 ( 5 DMA), any close above will push the pair towards 1.7629 (9 DMA)
• Support is seen at 1.7421 (23.6% fib ) and break below could take the pair towards 1.4558 (21st April low)..
Recommendation: Good to sell around 1.4830, with stop loss of 1.4970 and target price of 1.4730.
