• EUR/AUD traded in tight range on Monday as investors cautiously awaited slew of economic indicators this week from Eurozone .
• This week, investors will look to final inflation data and flash PMI readings for the eurozone, as well as Germany's fourth-quarter GDP, to assess the continent's economic situation.
• A daily close above 1.6478 (32.8 %fib )will further improve the technical outlook, and open the possibility of a drop towards 1.6400 level.
• Technical signals are bearish as RSI is heading down at 49, daily momentum studies 5, 9 and 1 DMAs are trending down.
• Immediate resistance is located at 1.6503(Daily high), any close above will push the pair towards 1.6564(23.6%fib)
• Strong support is seen at 1.6478 (32.8 %fib ) and break below could take the pair towards 1.6402 (Lower BB).
Recommendation: Good to sell around 1.6490, with stop loss of 1.6600 and target price of 1.6430
