FxWirePro- Currency Strength Index (4- Hour chart)- Currency pairs to watch (AUDUSD and USDCAD) for the day
FxWirePro: EUR/AUD falls on softer U.S. CPI data, plunge to test a key fibo grows
• EUR/AUD declined sharply on Wednesday after U.S. headline and core inflation undershot forecasts, pushing the pair below 5DMA and 38.2%fib.
• Less than expected July inflation report raised expectations of a less aggressive rate hike cycle than previously expected by the US Federal Reserve.
• Selling pressure will remain in the short-term, only a move above 1.4757( 50 % fib) strong resistance will shift the bias higher.
• Technical signals show the pair could lose more ground as RSI is at 38 bearish, and 5, 9,11 DMA’s are trending south.
• Immediate resistance is located at 1.4643 (5DMA), any close above will push the pair towards 1.4763(38.2%fib).
• Immediate support is seen at 1.4490 (April 13th low) and break below could take the pair towards 1.4338(23.6%fib).
Recommendation: Good to sell round 1.4550 with stop loss of 1.4700 and target price of 1.4420
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