EUR/AUD drops below 1.42

FXStreet (Mumbai) - The EUR/AUD pair fell more than 200 pips from the daily highs to trade at 1.4183 levels, after the Reserve Bank of Australia (RBA) markets held interest rates unchanged earlier today.

Trades below 50-DMA

The pair currently trades below its 50-DMA located at 1.4226, after having failed to sustain gains earlier today above 200-DMA located at 1.4418. The Aussie rose higher across the board after the RBA held interest rate unchanged at 2.25% at its April meeting, citing a slight improvement in activity and Sydney house price inflation in its decision.

A further decline the pair could be seen in case the services PMI indices across the Eurozone disappoint market expectations.

EUR/AUD Technical Levels

The immediate resistance is seen at 1.4226 (50-DMA), above which gains could be extended to 1.43. On the flip side, support is seen at 1.4178, under which losses could be extended to 1.4105.

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