Broad weakness was seen across the Antipodeans after re-emergence of China concerns weighed on commodity prices and Asian equity markets.
- EUR/AUD cross takes out 61.8 % Fib of 1.6585 to 1.4347 fall at 1.5730, hits multi-month highs at 1.5829, before retracing to 1.5634 levels.
- Shift of momentum from bulls to bears likely seen on charts. RSI is showing a retrace from near 70 levels, stochs on the verge of a rollover from overbought levels with a bearish crossover.
- 0.55 is strong support on the downside, while 0.5830-35 is seen as a strong resistance zone for the pair.
- Due later in the European session, EMU's Investor Confidence tracked by the Sentix index will be in focus for further direction.
Recommendation: We would sell rallies around 0.57 levels, SL: 0.5830, TP: 1.55/1.5470/1.5430
