• EUR/AUD declined on Tuesday as increased risk appetite boosted Australian dollar across the board.
• Risk-related currencies such as the Australian dollar gained after China said it will scrap its COVID quarantine rule for inbound travellers.
• A close below puts daily cloud base 1.5766 (38.2 %fib ) and then 1.5672 (21DMA)in focus.
• Technical signals are bearish as RSI is heading down , daily momentum studies 5, 9 DMAs are trending down.
• Immediate resistance is located at 1.5912( Dec 23rd high), any close above will push the pair towards 1.6000(23.6 %fib)
• Strong support is seen at 1.5766 (38.2 %fib ) and break below could take the pair towards 1.5672 (21DMA).
Recommendation: Good to sell around 1.5810, with stop loss of 1.5900, and target price of 1.5750,
