• EUR/AUD edged higher on Tuesday but gains were limited as investors took a cautious stance ahead of the US CPI data and ECB decision.
• U.S. inflation data that will set the tone for whether the Federal Reserve will raise rates again ahead of ECB’s Thursday meeting.
• EUR/AUD gains near 5DMA,consolidation likely to continue while market seeks fresh factors.
• Technical signals are bearish as RSI is heading down at 49, daily momentum studies 5, 9 and 11 DMAs are trending down.
• Immediate resistance is located at 1.6754 ( 5DMA), any close above will push the pair towards 1.6812(38.2%fib)
• Support is seen at 1.6674 (50%fib) and break below could take the pair towards 1.6637(Lower BB).
Recommendation: Good to sell around 1.6740, with stop loss of 1.6860 and target price of 1.6690
