• EUR/AUD declined on Tuesday after soft US CPI data sparked some short selling on the pair
• U.S. consumer prices were unchanged in October and underlying inflation showed signs of slowing. In the 12 months through October, the CPI climbed 3.2%
• A daily close above 1.6754( 38.2%fib)will further improve the technical outlook, and open the possibility of a rally towards 1.6800 level.
• Technical signals are bearish as RSI is heading up at 54, daily momentum studies 5, 9 and 1 DMAs are trending up.
• Immediate resistance is located at 1.6754( 38.2%fib), any close above will push the pair towards 1.6847 (23.6%fib)
• Strong support is seen at 1.6677 (9DMA ) and break below could take the pair towards 1.6661 (9DMA).
Recommendation: Good to buy around 1.6700, with stop loss of 1.6600 and target price of 1.6780
