• EUR/AUD held near recent lows on Wednesday as investors remained bearish on the cross currency pair’s near-term prospects.
• EUR/AUD is looking vulnerable to steeper declines as it has failed to regain above1.5787 ( 38.2%fib), prompting a pick-up in downside demand.
• EUR/AUD medium-term technical chart structure remains negative, which will further push the pair downwards.
• On the upside, Immediate resistance is located at 1.5787 ( 38.2%fib), any close above will push the pair towards 1.5863 (50%fib).
• On the downside, support is seen at 1.5685 (23.6%fib) and break below could take the pair towards 1.5600 (Psychological level).
Recommendation: Good to sell on rallies around 1.5750, with stop loss of 1.5860 and target price of 1.5650.
