• EUR/AUD declined on Monday as risk appetite strengthened, supported by encouraging economic data and bets that the Fed will tighten policy at a slower pace.
• Strong support is at 1.4938 ,A break below will encourage fresh selling and accelerate downtrend.
• Technical signals are bearish as RSI is at 49, daily momentum studies 5, 9 and 10 DMAs are trending south.
• Immediate resistance is located at 1.5015( 5DMA), any close above will push the pair towards 1.5121(38.2% fib)
• Strong support is seen at 1.4938 (50%fib) and break below could take the pair towards 1.4833 (50DMA).
Recommendation: Good to sell on rally around 1.4940, with stop loss of 1.5060 and target price of 1.4880.
