• EUR/AUD declined on Wednesday as euro continued to be pressured by a yesterday’s weak ZEW survey showing a third straight month of deterioration in German investor sentiment.
• Pair traded in a quiet 1.5894/1.5991 range and was last trading at 1.5917 into the US afternoon. Another dip is likely.
• Technical signals show the pair could lose more ground as RSI is at 46 bearish, and 9, 11,21 DMA’s are trending south.
• Immediate resistance is located at 1.5919(5DMA), any close above will push the pair towards 1.6046 (38.2%fib).
• Immediate support is seen at 1.5896(50%fib) and break below could take the pair towards 1.7475 1.5868(50 DMA).
Recommendation: Good to sell round 1.5930, with stop loss of 1.6000 and target price of 1.5850
