• EUR/AUD initially gained on Tuesday but earlier gains faded as investors awaited the outcome of the midterm elections that will determine control of Congress.
• Markets will also closely watch consumer price data for October, due on Thursday, for indications about the Federal Reserve’s future monetary policy path.
• EUR/AUD breaks below the 38.2%fib at 1.5388, it will increase downward pressure with initially target at 0.9744.
• Technical signals show the pair could lose more ground in the short-term as RSI is turning bearish, daily momentum studies 11, 14 and 21 DMAs are trending down.
• Immediate resistance is located at 1.5519 ( 21DMA), any close above will push the pair towards 1.5626 (23.6%fib).
• Immediate support is seen at 1.5388(38.2%fib) and break below could take the pair towards 1.5318 (Lower BB).
Recommendation: Good to sell around 1.5450, with stop loss of 1.5550 and target price of 1.5320
