• EUR/AUD traded in tight range on Wednesday as markets were on the defensive as worries about further turmoil in the energy sector kept investors cautious.
• The pair is approaching to test the 1.6989 (23.6% fib) support zone, a close below this region could turn the outlook more bearish for the pair.
• Technical signals are bearish as RSI is at 41, daily momentum studies 5, 9 and 10 DMAs are trending flat.
• Immediate resistance is located at 1.7346 ( 50 DMA), any close above will push the pair towards 1.7531 (38.2 % fib)
• Support is seen at 1.6989 (23.6% fib) and break below could take the pair towards 1.6767 (100 DMA).
• Recommendation: Be on sidelines
