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

• EUR/AUD was little changed on Thursday as traders assessed   European commission revised  economic growth forecast.

• The euro area economy is projected to recover slowly this year but inflation is expected to decelerate notably on falling energy prices, the European Commission said in its Winter interim forecast.

• EUR/AUD remains well below 38.2 %fib resistance ,Daily  close below  1.6478 (23.6 %fib ) support will  increase the scope for much bigger drop

• Technical signals are bearish as RSI is heading down  at 49, daily momentum studies  5, 9 and 1 DMAs are trending down. 

•  Immediate resistance is located at 1.6548(38.2 %fib), any close above will push the pair towards 1.660(50 %fib)

• Strong support is seen at 1.6478 (23.6 %fib ) and break below could take the pair towards 1.6405 (Lower BB).

Recommendation: Good to sell   around 1.6530, with stop loss of 1.6650  and target price of 1.6430
 

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