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FxWirePro:EUR/AUD range bound in short term, primary trend still lower

• EUR/AUD edged higher on Tuesday but gains were limited   as investors took a cautious stance ahead of the US CPI data and  ECB decision.

• U.S. inflation data that will set the tone for whether the Federal Reserve will raise rates again ahead of ECB’s Thursday meeting.

• EUR/AUD gains near 5DMA,consolidation likely to continue while market seeks fresh factors.

• Technical signals are bearish as RSI is heading down  at 49, daily momentum studies  5, 9 and 11 DMAs are trending down. 

• Immediate resistance is located at 1.6754 ( 5DMA), any close above will push the pair towards 1.6812(38.2%fib)

• Support is seen at 1.6674 (50%fib) and break below could take the pair towards 1.6637(Lower BB).

Recommendation: Good to sell around 1.6740, with stop loss of 1.6860 and target price of 1.6690
 

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