• EUR/AUD declined on Friday as the pair attracted sellers after Powell speech revealed Fed Chair is not yet ready to taper.
• The dovish lean by Powell, and potentially longer lead-up to tapering, weighed on the EUR/AUD.Pair falls sharply below the 1.6149 ( 50%fib).
• The pair currently is approaching support at 1.6104 (21DMA ). A break under 1.6104 would unmask 1.6000 level in the short term.
• Technical signals are bearish as RSI is at 49, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.6149 ( 50%fib), any close above will push the pair towards 1.6257 (38.2%fib)
• Strong support is seen at 1.6104 (21DMA ) and break below could take the pair towards 1.6019(61.8%fib).
Recommendation: Good to sell on rally around 1.6120, with stop loss of 1.6200 and target price of 1.6000.
