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FxWirePro:EUR/AUD outlook weaker on renewed downside pressure

• EUR/AUD declined on Monday  as higher commodity prices and speculation RBA  could sound less dovish at its policy meeting this week boosted Australian dollar. 

• The RBA board meets on Tuesday and is expected to leave rates on hold at 0.1% but also is set to confirm  the economy continues to surprise with strength.

• The pair, already trading lower on the day, extended its drop to hit 1.4526, lowest since Mar 7th.

• Technical signals show the pair could lose more ground in the short-term as RSI is at 32 bearish, daily momentum studies 9, 10 and 11 DMAs are trending down.

• Immediate resistance is located at 1.4773 ( 38.2%fib), any close above will push the pair towards 1.4870 (21DMA).

• Immediate support is seen at 1.4526 (23.6%fib) and break below could take the pair towards 1.4377 (Lower BB).

Recommendation: Good to sell   around 1.4570, with stop loss of 1.4750 and target price of 1.4500
 

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