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FxWirePro: EUR/AUD extends drop, key support under pressure

• EUR/AUD declined on Tuesday as higher oil prices and coronavirus vaccine trial success sparked hefty gains in Australian dollar.

• Continued climb in the price of iron ore  Australia’s single biggest export earner also supported Aussie bulls.

• The pair is approaching to support at 1.6555 ( 200 DMA). A decisive break closure below  could generate further downside pressure. 

• Technical signals are bearish as RSI is at 42, momentum studies  5, 9 and 11 DMAs are trending down. 

• Immediate resistance is located at 1.6881 ( 100 DMA), any close above will push the pair towards 1.6938 (23.6% fib)

• Strong support is seen at 1.6555 ( 200 DMA) and break below could take the pair towards 1.6470 (Lower BB).

 Recommendation: Good to sell   around 1.6680, with stop loss of 1.6950 and target price of 1.6500.
 

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