FxWirePro:EUR/AUD pauses decline, downside risk remains

• EUR/AUD recovered some ground on Tuesday as caution reined in markets ahead of the Federal Reserve’s monetary policy meeting on Wednesday.

•The Federal Reserve is expected to reassure markets it will ignore temporary spikes in inflation and maintain ultra loose policy settings for the foreseeable future .

•After four day fall, pair has retreated to 1.5566, EUR/AUD failed to take out  1.5458 (23.6%fib) as bears   paused ahead of Wednesday's FOMC decision.

• Technical signals are bearish as RSI is at 49, daily momentum studies  5, 9 and 10 DMAs are trending down. 

• Immediate resistance is located at 1.5550 ( 14 DMA), any close above will push the pair towards 1.5625 (38.2 % fib).

• Strong support is seen at 1.5453 (23.6%fib ) and break below could take the pair towards 1.5355 (lower BB).

Recommendation: Good to sell around 1.5560 with stop loss of 1.5680 and target price of 1.5400.