• EUR/AUD declined on Wednesday as gains commodities and European equities lift risk-sensitive Australian dollar.
• European equities surged to their biggest daily gain in two months, buoyed by a batch of strong fourth-quarter trading updates.
• Technical signals are bearish as RSI is heading down at 53, daily momentum studies 9,11 and 14 DMAs are trending down.
• Immediate resistance is located at 1.5916 ( 9 DMA), any close above will push the pair towards 1.5947 (9 DMA)
• Support is seen at 1.5843 (38.2 %fib ) and break below could take the pair towards 1.5752(23.6%fib).
Recommendation: Good to sell on rally around 1.5920, with stop loss of 1.6000 and target price of 1.5840.
