FxWirePro:EUR/AUD attracts selling interest, vulnerable to more downside

• EUR/AUD declined on Monday  as Australian dollar firmed  ahead of a rate decision from the Reserve Bank of Australia (RBA) on Tuesday.

• The RBA is expected to deliver a quarter-point cut, marking its first reduction in over four years as it joins other major central banks in their easing cycles..

• Inflation in Australia dropped to 2.4% last quarter, within the RBA's 2-3% target, prompting several economists to bring forward rate cut expectations to February 18.

•  Technical signals are bearish as RSI is heading down  at 42, daily momentum studies  5, 9 and 11 DMAs are trending down. 

•  Immediate resistance is located at 1.6514 (50%fib), any close above will push the pair towards 1.6576(50%fib)

• Support is seen at 1.65454(38.2%fib ) and break below could take the pair towards 1.6380(23.6%fib).

Recommendation: Good to sell around 1.6480, with stop loss of 1.6550 and target price of 1.6410