FxWirePro:EUR/AUD gains some upside momentum but still bearish

• EUR/AUD strengthened on Tuesday  as Australian dollar slipped after the Reserve Bank of Australia (RBA) kept rates steady and held back from taking a hawkish stance.

• Wrapping up its two-day May policy meeting, the Reserve Bank of Australia (RBA) kept rates at a 12-year high of 4.35%.However, it stopped short of reinstating a tightening bias.

• At GMT 16:28, the pair was trading up 0.27 percent  at 1.6296 after reaching daily high at 1.6289.

•  Technical signals are bearish as RSI is heading down  at 40, daily momentum studies  5, 9 and 11 DMAs are trending down. 

• Immediate resistance is located at 1.6321 ( 38.2% fib), any close above will push the pair towards 1.6392(50% fib)

•  Support is seen at 1.6228(23.6%fib ) and break below could take the pair towards 1.6189(Lower BB).

Recommendation: Good to sell on rally around 1.6320, with stop loss of 1.6430 and target price of 1.6240