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FxWirePro:EUR/AUD room for further drop, good to sell on rally

• EUR/AUD declined on Monday as better risk sentiment in the market supported Australian dollar broadly.

• The Aussie also gained as equities and commodities built on Friday's gains. Copper rose over 1.5% in Monday  while Dalian iron ore was up close to 10%

• At GMT 16:26, the pair was trading 0.26% lower at 1.5486. The cross pairs bearish bias is set to strengthen, likely to drop towards 1.7750

• Technical signals are bearish  as RSI is at 44, daily momentum studies  5,9,11 DMA’s, are trending down. 

• Immediate resistance is located at 1.5486 (50 DMA ), any close above will push the pair towards 1.5537 (38.2%fib).

• Strong support is seen at 1.5415 (23.6%fib) and break below could take the pair towards 1.7711 (30th Mach low).

Recommendation: Good to sell around 1.5490 with stop loss of 1.5550 and target price of 1.5410.

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