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FxWirePro: EUR/AUD neutral in the near-term, scope for downward resumption

• EUR/AUD  initially  gained on Tuesday  but fell   as investors assessed mixed U.S. inflation data for January .

• U.S. inflation data showed consumer price pressures eased for some goods and services, but accelerated for others.

• EUR/AUD is now on course to register a   close below the 1.5347(23.6%fib), chart points to bigger drop towards  1.5300.

• Technical signals show the pair could lose more ground in the short-term as RSI is at 45 bullish, daily momentum studies  5, 9 and 11 DMAs are trending  down. 

• Immediate resistance is located at 1.5427(5DMA), any close above will push the pair towards 1.5503 (38.2%fib).

• Strong support is seen at 1.5347(23.6%fib) and break below could take the pair towards 1.5247 (Lower BB ).

Recommendation: Good to sell  around 1.5400 with stop loss of 1.5500 and target price of 1.5340
 

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