• EUR/AUD edged higher on Tuesday but gains were limited as jitters about an economic downturn in the euro zone persisted.
• Pair traded in 1.6470/1.6550 range and was last trading at 1.6527 in the US afternoon session.
• A daily close below 23.6%fib will further improve the bearish outlook and open the possibility of a drop towards 1.6400 level.
• From a technical viewpoint, the moving averages are pointing downwards, while the RSI is bearish at 42.
• Immediate resistance is located at 1.6544(5DMA), any close above will push the pair towards 1.6577 ( 38.2%fib).
• Strong support is seen at 1.6453 (23.6%fib) and break below could take the pair towards 1.6433 (Lower BB).
Recommendation: Good to sell around 1.6560, with stop loss of 1.6640 and target price of 1.6440.
