• EUR/AUD initially gained but rally fizzled out as higher oil prices and increased risk appetite boosted Australian dollar against euro.
• Oil rose 0.79%, helped by short-covering and a report Iran may seek to curb exports.Gold dropped 0.62% and copper fell 1.39% as the dollar strengthened.
• Technical signals are bearish as RSI is heading down at 46, daily momentum studies 5, 9 and 11 SMAs are trending down.
• Immediate resistance is located at 1.6296( 38.2%fib), any close above will push the pair towards 1.6388 (50%fib)
• Strong support is seen at 1.6181 (23.6 %fib ) and break below could take the pair towards 1.6102 (Oct 7th low).
Recommendation: Good to sell on rally around 1.6290, with stop loss of 1.6370 and target price of 1.6200
