• EUR/AUD initially gained on Monday but gave up ground as investors attention turned to crucial U.S. inflation report and awaited interest rate decisions from major global central banks.
• U.S. inflation report and interest rate decisions from the Fed, the BoE, and the ECB will be evaluated in light of the market's mounting speculation about a global easing of monetary policy.
• EUR/AUD remains well below 1.6382( 5DMA),daily close below 38.2%fib increase the scope for much bigger drop.
• Technical signals show the pair could lose gain more ground in the short-term as RSI is at 41 bearsh, daily momentum studies 9, 10 and 11 DMAs are trending down.
• Immediate resistance is located at 1.6381( 5DMA), any close above will push the pair towards 1.6418(50% fib)
• Support is seen at 1.6361(38.2%fib ) and break below could take the pair towards 1.6290(23.6%fib).
Recommendation: Good to sell around 1.6400, with stop loss of 1.6550 and target price of 1.6330.
