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

• EUR/AUD declined on Thursday as risk-on sentiment and gains in equity, copper , iron-ore added to Australian dollar buoyancy.

• Pair traded in   1.4782/1.4909 range and was last trading at 1.4781 in late US afternoon.

• EUR/AUD is now on course to register a   close below the 1.4773 (38.2%fib ) level, chart points to bigger drop towards  1.4630. 

• Technical signals are bearish as RSI is at 41, daily momentum studies  5,9 and 10 DMAs are trending down.

• Immediate resistance is located at 1.4869( 5DMA), any close above will push the pair towards 1.4920 (50%fib)

• Strong  support is seen at 1.4773 (38.2%fib ) and break below could take the pair towards 1.4686 (Apr 29th low).

Recommendation: Good to sell  around 1.4800, with stop loss of 1.4900 and target price of 1.4720.

 

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