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FxWirePro: EUR/AUD extends drop, critical support lies ahead

• EUR/AUD declined on Friday  as higher commodity prices and increased risk appetite supported commodity linked Australian dollar. 

• Selling pressure will remain in the short-term, only a move above 2.0140 ( 61.8 % fib) strong resistance  will shift the bias higher.

•Today’s drop has put EUR/AUD back below 50%fib and has put the 1.5652 (61.8%fib)back in play.

• From a technical viewpoint, the moving averages are pointing downwards, while the RSI  is strongly bearish at 49.

• Immediate resistance is located at 1.5761 (11DMA), any close above will push the pair towards 1.5792(38.2%fib).

• Immediate support is seen at 1.5708(Daily low) and break below could take the pair towards 1.5652 (61.8%fib).

Recommendation: Good to sell round 1.5720 with stop loss of 1.5790 and target price of 1.5650
 

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