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FxWirePro: EUR/AUD downside pressure is building, scope for a sustained break below 23.6%fib

• EUR/AUD declined on Monday as buoyant risk mood boosted Australian dollar.

• Australia dollar was boosted by assurances of generous US monetary poilicy , fiscal support.

• Looking ahead investors eye RBA minutes of Feb meeting on Tueday, employment data on  Thursday, retail sales data Fri day.

• EUR/AUD dived below the 5DMA and trades down at 1.5574  .

• Technical lean bearish, RSI is lower at 36, momentum studies, 9, 11 DMAs falling southwards. 

• Immediate resistance is located at 1.5633 ( 5DMA), any close above will push the pair towards 1.5718 (38.2%fib)

• Strong support is  at 1.5574 (30 DMA ) and break below could take the pair towards 1.5500(Psychological level).

Recommendation:   Good to sell   around 1.5580, with stop loss of 1.5700 and target price of 1.5500
 

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