• EUR/AUD initially gained on Monday but gave up ground as market waited for fresh catalyst
• Investors stayed cautious on news from DC on debt ceiling talks as the debt ceiling impasse kept risk sentiment fragile.
• Technical signals show the pair could lose more ground as RSI is at 46 bearish, and 9, 11,21 DMA’s are trending south.
• Immediate resistance is located at 1.6279 (14DMA), any close above will push the pair towards 1.6347(38.2%fib).
• Immediate support is seen at 1.6215 (50%fib) and break below could take the pair towards 1.6137 (May 10th low).
Recommendation: Good to sell round 1.6290, with stop loss of 1.6370 and target price of 1.6200
