• EUR/AUD declined on Tuesday as Australian dollar was supported by rising risk appetite as geopolitical concerns faded .
• Investors awaited inflation data from Australia and US. Australia Q1 CPI is out on Wednesday, while US PCE price index is out Thursday.
• A close below 1.6492(38.2% fib ) puts 1.6437 (23.6% fib) in focus.
• 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 1.6536 (50% fib), any close above will push the pair towards 1.6564 (Daily high)
• Support is seen at 1.6492(38.2% fib ) and break below could take the pair towards 1.6437 (23.6% fib).
Recommendation: Good to sell around 1.6510, with stop loss of 1.6600 and target price of 1.6420.
