FxWirePro: EUR/AUD pauses decline, downside risk remains

• EUR/AUD recovered some ground on Tuesday as the pair was aided by profit-taking on shorts.

•After the two-day fall, pair has retreated to 1.6222, EUR/AUD may need a break below 23.6% fib to clear  assault on 1.6100.

• Technical signals are bearish as RSI is at 39, daily momentum studies  5, 9 and 10 DMAs are trending down. 

• On the upside, Immediate resistance is located at 1.6263 ( 5 DMA), any close above will push the pair towards 1.6381 (38.2 % fib).

• On the downside, support is seen at 1.6178 (23.6%fib ) and break below could take the pair towards 1.6100 (lower BB).

Recommendation: Good to sell around 1.6250, with stop loss of 1.6380 and target price of 1.6140.