• EUR/AUD initially rose on Tuesday but rally faltered as traders decided to bet bigger on risker currencies like Australian dollar.
• Initial rebound was driven by White House Navarro's comment that trade deal with China is over . Move higher proved short-lived after White House walked back the comments.
• EUR/ AUD pulled back to hit daily low at 1.6237 and was trading around 1.6285 into the US afternoon.
• Technicals highlight more downside risk as RSI is at 42 bearish, daily momentum studies 9, 10 and 21 DMAs are trending down.
• On the upside, Immediate resistance is located at 1.6365 ( 9 DMA), any close above will push the pair towards 1.6449 (50% fib ).
• On the downside, support is seen at 1.6277 (23.6% fib) and break below could take the pair towards 1.6155 (10th July low).
Recommendation: Good to sell on rallies around 1.6320, with stop loss of 1.6600 and target price of 1.6200.
