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FxWirePro:EUR/AUD drift lower, could be on verge of bigger drop

• EUR/AUD declined on Tuesday  as increased risk appetite boosted Australian dollar across the board.

• Risk-related currencies such as the Australian dollar gained after China said it will scrap its COVID quarantine rule for inbound travellers.

• A close below puts daily cloud base 1.5766 (38.2 %fib ) and  then 1.5672 (21DMA)in focus.

• Technical signals are bearish as RSI is heading down  , daily momentum studies  5, 9 DMAs are trending down. 

• Immediate resistance is located at 1.5912( Dec 23rd high), any close above will push the pair towards 1.6000(23.6 %fib)

• Strong support is seen at 1.5766 (38.2 %fib ) and break below could take the pair towards 1.5672 (21DMA).

Recommendation: Good to sell around 1.5810, with stop loss of 1.5900, and target price of 1.5750,
 

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