FxWirePro- Currency Strength Index (4- Hour chart)- Currency pairs to watch (EURUSD and AUDUSD) for the day)
FxWirePro:EUR/AUD upside limited, scope for a dive through a key fibo
• EUR/AUD initially gained but gave ground after data showed the downturn in the German economy has worsened in September.
• S&P Global's flash composite Purchasing Managers' Index (PMI)fell to 45.9 in September from August's final reading of 46.9.
• The pair might fall towards 1.4750 due to recession fears as Europe's largest economy looks set to contract in the third quarter.
• Technical signals are bearish as RSI is heading down at 45, daily momentum studies 5, 9 and 11 DMAs are trending down.
• Immediate resistance is located at 1.4861( 38.2% fib), any close above will push the pair towards 1.4964(23.6%fib)
• Support is seen at 1.4783(50%fib ) and break below could take the pair towards 1.4691(61.8%fib).
Recommendation: Good to sell on rally around 1.4860, with stop loss of 1.4960 and target price of 1.4780.