• EUR/AUD declined on Thursday as improved risk appetite boosted Australian dollar.
• The Australian dollar was the main beneficiary of the emanating from the Federal Reserve meeting on Wednesday. The retail sales data for Australia in September is scheduled to be published tomorrow.
• Technical signals are bearish as RSI is heading down at 44, daily momentum studies 5, 9 and 1 DMAs are trending down.
• Immediate resistance is located at 1.6560 (38.2 %fib), any close above will push the pair towards 1.6627 (9DMA)
• Strong support is seen at 16460 (23.6 %fib ) and break below could take the pair towards 1.6395 (Oct 10th low).
Recommendation: Good to sell on rally around 1.6520, with stop loss of 1.6800 and target price of 1.6430
