• EUR/AUD declined on Wednesday as investor appetite to look for returns outside the European currency helped the risk-sensitive aussie burst higher.
• The pair, already trading lower on the day, extended its drop to hit 1.5775, it was last down 0.41% on the day.
• Technical signals show the pair could lose more ground in the short-term as RSI is at 32 bearish, daily momentum studies 9, 10 and 11 DMAs are trending down.
• On the upside, Immediate resistance is located at 1.5818 ( 38.2%fib), any close above will push the pair towards 1.5886 (50%fib).
• On the downside, support is seen at 1.5765 (Lower BB) and break below could take the pair towards 1.5737 (23.6%fib).
Recommendation: Good to sell on rallies around 1.5800, with stop loss of 1.5890 and target price of 1.5700.
