FxWirePro:EUR/AUD reverses recent rally, bias back to downside

• EUR/AUD declined on Tuesday as Australian dollar rose after RBA indicated the Omicron variant outbreak was unlikely to derail the current financial recovery.

• The Reserve Bank of Australia (RBA) left its cash rate at a record low, in line with market expectations, and stuck with its bond buying plans

• At GMT 17:59, the pair was trading down 1.18 percent   at 1.5810.

• Technical signals are bearish as RSI has turned sharply lower, daily momentum studies  5, 9 and 1 DMAs are trending down. 

• Immediate resistance is located at 1.5853 ( 50%fib), any close above will push the pair towards 1.5978(61.8%fib)

• Support is seen at 1.5739 (38.2 %fib ) and break below could take the pair towards 1.5655(30DMA).

Recommendation: Good to sell on rally around 1.5820, with stop loss of 1.5920 and target price of 1.5740.