•EUR/AUD declined on Monday as upbeat Australian retail sales data ,Iron-ore , equity gains buoyed risk sensitive Australian dollar.
•Strong Australian Sept retail sales gave more ammunition for 25 bp RBA hike Nov 7, market now pricing in a 60% chance RBA will hike next week.
• EUR/AUD probed 23.6% fib support zone and recovered towards 1.6647 level, Break below 23.6% fib support zone will open path towards towards 1.6550 level.
• Technical signals are bearish as RSI is heading down at 49, daily momentum studies 5, 9 and 11 DMAs are trending down.
•On the upside, Immediate resistance is located at 1.6657 ( 50DMA), any close above will push the pair towards 1.6700 (38.2% fib)
•Strong support is seen at 1.6598(23.6% fib) and break below could take the pair towards 1.6547 (Oct 12th low).
Recommendation: Good to sell around 1.6660 with stop loss of 1.6750 and target price of 1.6580
