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FxWirePro:EUR/AUD capped by the 38.2% fibonacci,good to sell on rallies

• EUR/AUD initially fell on Thursday but gained some ground as hopes of a swifter global economic recovery and an upbeat sentiment in Italy politics  offered support to falling euro.

• Rallies in EUR/AUD are being capped  as sentiment is negative about euro-specific issues such as the EU vaccine rollout and Italian politics.

• At GMT 15:25, the pair was trading 0.18% lower at 1.5768, after hitting daily low at 1.5705.  

 • Technical signals show the pair could lose more ground in the short-term as RSI is at 45 bearish, daily momentum studies  5, 10 and 21 DMAs are trending  south.

• Immediate resistance is located at 1.5794( 38.2%fib), any close above will push the pair towards 1.5874 ( Higher BB)

• Support is seen at 1.5707 (Daily low) and break below could take the pair towards 1.5623 (23.6%fib).

Recommendation: Good to sell around 1.5770, with stop loss of 1.5900 and target price of 1.5680
 

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