• EUR/AUD declined on Wednesday as risk sentiment in the market faltered on rising COVID concerns, while Australian dollar was supported by upbeat retail data.
• Australian retail sales outperformed expectation in March in a positive sign for the economy as increasing housing prices and increase in employment boosted consumer confidence.
• The pullback from the yesterdays high has passed through the 23.6% fibonacci retrace level at 1.5530 and now eyes 30DMA at 1.5473.
• The pair has traded a 100 pip range thus far Tuesday, 1.5608 -1.5508 .Unless there is major news downtrend looks set to extend.
• Technical signals bearish as RSI is 49, daily momentum studies 9, 11 and 21 DMAs are trending down.
• Immediate resistance is located at 1.5608 ( Daily high), any close above will push the pair towards 1.5645 (Higher BB)
• Strong support is seen at 1.5473 (30DMA ) and break below could take the pair towards 1.5361 (Lower BB).
Recommendation: Good to sell on rallies around 1.5520, with stop loss of 1.5640 and target price of 1.5450.
