• EUR/AUD initially rose in Asian session on Wednesday, but rally fizzled as concern about the impact of coronavirus on the eurozone economy weighed on euro.
• At GMT 18:10, the pair was trading 0.80% lower at 1.6829, slightly higher from session low at 1.6767.
• Technical lean bearish, RSI is turning sharply lower, momentum studies, 5, 10 DMAs falling southwards. While, 21 day Bollinger bands indicating an overbought market.
• On the upside,immediate resistance is located at 1.6905 ( 5DMA), any close above will push the pair towards 1.7000 (Psychological level).
• On the downside, support is seen at 1.6710(9 DMA) and break below could take the pair towards 1.6622 (11 DMA).
Recommendation: Good to sell on rallies around 1.6900, with stop loss of 1.7000 and target price of 1.6650.
