• EUR/AUD initially gained on Tuesday but the pair dripped lower as caution prevailed ahead of latest U.S. inflation data.
• The most crucial data this week will be Wednesday's U.S. CPI. Investors are closely monitoring inflation figures to gauge when the Federal Reserve might start lowering interest rates.
• Technical signals are bearish as RSI is at 43, daily momentum studies 5,9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.6367( 38.2%fib), any close above will push the pair towards 1.6426 (23.6%fib)
• Strong support is seen at 1.6315(50%fib ) and break below could take the pair towards 1.6266 (61.8%fib).
Recommendation: Good to sell around 1.6330, with stop loss of 1.6450 and target price of 1.6250
