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FxWirePro:EUR/AUD recovers from early dip as support holds

• EUR/AUD recovered some ground on Monday as investors to trim their bearish bets on euro.

• EUR/AUD fell as low as 1.5738 before buyers returned.EUR/AUD is moving higher into the US afternoon and is sitting around 1.5777.

•Support at 23.6% fib at 1.5738  is holding  but break would send the pair further lower.

• Technical signals are bearish as RSI is at 34, daily momentum studies  5 ,11 and 14 DMAs are trending down.

• On the upside, Immediate resistance is located at 1.5788 ( 5DMA), any close above will push the pair towards 1.5820 (38.2%fib)

• On the downside, support is seen at 1.5738 (23.6% fib ) and break below could take the pair towards 1.5655 (Lower BB).

Recommendation: Good to sell   around 1.5800, with stop loss of 1.5900 and target price of 1.5700.

 

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