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FxWirePro:EUR/AUD extends drop, critical support lies ahead

• EUR/AUD declined on Wednesday as euro continued to be pressured by a yesterday’s weak ZEW survey showing a third straight month of deterioration in German investor sentiment.

• Pair traded in a quiet 1.5894/1.5991  range and was last trading at 1.5917 into the US afternoon. Another dip is  likely.

• Technical signals show the pair could lose more ground as RSI is at 46 bearish, and 9, 11,21 DMA’s are trending south.

• Immediate resistance is located at 1.5919(5DMA), any close above will push the pair towards 1.6046 (38.2%fib).

• Immediate support is seen at 1.5896(50%fib) and break below could take the pair towards 1.7475 1.5868(50 DMA).

Recommendation: Good to sell round 1.5930, with stop loss of 1.6000 and target price of 1.5850

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