FxWirePro:EUR/AUD capped by 5-DMA, good to sell on rallies

• EUR/AUD recovered some ground on Tuesday  after the   pair failed to break support at  1.5622  but weak eurozone sentiment helped cap EUR/AUD below 5-day MA.

• EUR/AUD remains vulnerable to downside. A sharper increase above 1.5799 is needed to raise hopes for an uptrend.

• Technical signals are bearish as RSI is at 41, daily momentum studies  5, 9 and 10 DMAs are trending down. 

 •Immediate resistance is located at 1.5710 ( 5 DMA), any close above will push the pair towards 1.5790 (38.2 % fib).

• Support is seen at 1.5622 (23.6%fib ) and break below could take the pair towards  1.5622(Psychological level).

Recommendation: Good to sell  around 1.5700, with stop loss of 1.5800 and target price of 1.5580.