FxWirePro: EUR/AUD set for bigger drop, but close below key fibo needed

• EUR/AUD declined on Friday as investors fled to riskier assets like Australian dollar on fears of a meltdown in the global financial sector.

• Investor sentiment remained fragile on Friday as  investors lost confidence in U.S. regional banks and Credit Suisse in Europe.

• Pair traded in a quiet 1.5851/1.5956 range and was last trading at 1.5911 into the US afternoon.

• Technical signals are bearish as RSI has turned lower, daily momentum studies  10,11 and 14 DMAs are trending down.

• Immediate resistance is located at 1.5940 ( 9DMA), any close above will push the pair towards 1.5985 (50% fib)

• Support is seen at 1.5833 (38.2% fib ) and break below could take the pair towards 1.5563(LJan 23rd low).

Recommendation: Good to sell   around 1.5920, with stop loss of 1.6000 and target price of 1.5860