FxWirePro: EUR/AUD close below key fibo adds to the bearish bias, good to sell on rally
• EUR/AUD initially gained on Monday but gave up chunk of early gains as worries about China roiled global financial markets.
• Todays rejection at 1.6214 ( 23.6% fib), is a bearish sign, a break and daily close under the 1.6127 (38.2%fib) would weaken outlook further.
• At GMT 21:19, the pair was trading down 0.02 percent at 1.6615
• Technical signals are bearish as RSI is lower at 49, daily momentum studies 5, 9 and 11 DMAs are trending down.
• Immediate resistance is located at 1.6214 ( 23.6% fib), any close above will push the pair towards 1.6240 (Higher BB)
• Support is seen at 1.6127(50%fib ) and break below could take the pair towards 1.6090 (61.8%fib).
Recommendation: Good to sell on rally around 1.6170 with stop loss of 1.6210 and target price of 1.5900.