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FxWirePro: EUR/AUD backs off Wednesday high ahead of Euro zone and U.S inflation data

• EUR/AUD declined on Thursday as the pair attracted sellers  ahead of key Euro zone and U.S. inflation data  .

• Spotlight this week would be on a reading of May consumer prices for the euro zone due on Friday.

• U.S. inflation data, also due on Friday, could help traders assess the timing and numbers of possible rate cuts by the Federal Reserve this year.

• Technical signals are bearish as RSI is at 46, daily momentum studies  5, 9 and 10 DMAs are trending down. 

• Immediate resistance is located at 1.6364 (38.2 %fib), any close above will push the pair towards 1.6398 (Higher BB)

•  Strong support is seen at 1.6291 (23.6%fib ) and break below could take the pair towards 1.6215(May 20th low).

Recommendation: Good to sell  around 1.6340, with stop loss of 1.6480 and target price of 1.6260.
 

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