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

• EUR/AUD declined on Monday as commodity linked Australian dollar was boosted by higher oil prices.

• Easing of lockdown regulations in Australia and higher gold prices also helped commodity- Australia.

• Selling pressure will remain in the short-term, only a move above 1.6981(23.6% fib)  strong resistance  would indicate the weakness in pair has run out . 

• Technical signals are bearish as RSI is at 43, daily momentum studies  5, 9 and 10 DMAs are trending down. 

• On the upside, Immediate resistance is located at 1.6881 ( 100 DMA), any close above will push the pair towards 1.6981(23.6% fib)

• On the downside, support is seen at 1.6555 ( 200 DMA) and break below could take the pair towards 1.6470 (Lower BB).

Recommendation: Recommendation: Good to sell   around 1.6700, with stop loss of 1.6990 and target price of 1.6500.
 

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