• EUR/AUD declined on Wednesday, as speculation over further ECB easing weighed on euro.
• At GMT 17:00, the pair was trading 0.68% lower at 1.6144.
• Technical signals show strong bearish momentum RSI and the MACD on the daily chart have entered bearish territory, bolstering the case for more downtrend in the short-term.
• The bearish outlook remains intact after the breach of the 1.6209 (38.2% fib) . Bulls will need to clear 1.6285 (50% fib) barrier to take greater control.
• On the upside, Immediate resistance is located at 1.6209 ( 38.2% fib), any close above will push the pair towards 1.6285 (50% fib)
• On the downside, support is seen at 1.6111 (23.6% fib) and break below could take the pair towards 1.6030 (Lower BB).
Recommendation: Good to sell on rally around 1.6240, with stop loss of 1.6280 and target price of 1.6120.
