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FxWirePro: EUR/AUD dips below lower range, bearish bias increases

• EUR/AUD declined on Thursday as optimism of a closer fiscal union in Europe fizzled out.

• Euro also weakened after indicator which tracks the manufacturing and services sectors showed that Germany's recession eased in May but   less than anticipated. 

• Selling pressure will remain in the short-term, only a move above 1.6944 (23.6% fib) strong resistance  would indicate the weakness in pair has run out . 

• Technical signals are bearish as RSI is at 41, momentum studies  11, 21 and 30 DMAs are trending down. 

• Strong  resistance is located at 1.6776 ( 21 DMA), any close above will push the pair towards 1.6944 (23.6% fib)

• Immediate support is seen at 1.6600 ( Psychological level) and break below could take the pair towards 1.6496 (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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