• EUR/AUD declined on Monday as higher commodity prices and speculation RBA could sound less dovish at its policy meeting this week boosted Australian dollar.
• The RBA board meets on Tuesday and is expected to leave rates on hold at 0.1% but also is set to confirm the economy continues to surprise with strength.
• The pair, already trading lower on the day, extended its drop to hit 1.4526, lowest since Mar 7th.
• Technical signals show the pair could lose more ground in the short-term as RSI is at 32 bearish, daily momentum studies 9, 10 and 11 DMAs are trending down.
• Immediate resistance is located at 1.4773 ( 38.2%fib), any close above will push the pair towards 1.4870 (21DMA).
• Immediate support is seen at 1.4526 (23.6%fib) and break below could take the pair towards 1.4377 (Lower BB).
Recommendation: Good to sell around 1.4570, with stop loss of 1.4750 and target price of 1.4500
