• EUR/AUD declined on Monday as conflict in the Middle East drove currency pair lower .
• Investors digested the latest news about the conflict between Israel and the Palestinian Islamist group Hamas.
• Pair traded in 1.6630/1.6483 range and was last trading down 50% at 1.6485 in US afternoon.
• Technical signals show the pair could lose more ground as RSI is at 43 bearish, and 9, 11,21 DMA’s are trending south.
• Immediate resistance is located at 1.6560 (5DMA), any close above will push the pair towards 1.6664 (38.2% fib).
• Immediate support is seen at 1.6454(23.6% fib) and break below could take the pair towards 1.6402 (Oct 2nd low).
Recommendation: Good to sell round 1.6500, with stop loss of 1.6700, and target price of 1.6400
