• EUR/AUD declined on Tuesday, as weak growth in the euro-zone and negative shock from the coronavirus weighed on euro.
• The pair, already trading lower on the day, extended its drop to hit 1.6211, a two week low, it was last down 0.46% on the day.
• Technical signals show the pair could lose more ground in the short-term as RSI is at 47.48 bearish, daily momentum studies 9, 10 and 11 DMAs have started to trend south.
• On the upside, Immediate resistance is located at 1.6261 ( 38.2% fib), any close above will push the pair towards 1.6327 (50% fib)
• On the downside, support is seen at 1.6185 (23.6% fib) and break below could take the pair towards 1.6100 (Psychological level).
Recommendation: Good to sell on rally around 1.6330, with stop loss of 1.6380 and target price of 1.6120.
