• EUR/AUD declined sharply on Monday as a record output cut agreed by OPEC and other oil producing nations boosted commodity linked Australian dollar.
• The pair, already trading lower on the day, extended its drop to hit 1.7081, a one-month low, it was last down 0.75% on the day.
• Technical signals are bearish as RSI is at 36, daily momentum studies 5, 9 and 10 DMAs are trending down.
• On the upside, Immediate resistance is located at 1.7333( 5 DMA), any close above will push the pair towards 1.7629 (9 DMA)
• On the downside, strong support is seen at 1.7019 (23.6% fib ) and break below could take the pair towards 1.6798 (Lower BB).
Recommendation: Recommendation: Good to sell on rally around 1.7050, with stop loss of 1.7650 and target price of 1.6700.
