• EUR/AUD initially dipped on Monday but recovered most of the ground as the market awaited impetus from key central bank meetings this month.
• This week’s European Central Bank meeting, as well as the Federal Reserve and Bank of England meetings later this month, will set expectations for taper and, eventually, rate moves.
• At GMT 16:38, the pair was trading up 0.03 percent at 1.5707.
• Technical signals are bearish as RSI is heading down , daily momentum studies 5, 9 and 11 DMAs are trending southwards.
• Immediate resistance is located at 1.5744 ( 38.2% fib), any close above will push the pair towards 1.5798 (June 1st high)
• Strong support is seen at 1.5661 (50%fib ) and break below could take the pair towards 1.5596 (50DMA).
Recommendation: Good to sell around 1.5720, with stop loss of 1.5800 and target price of 1.5660.
