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Fxwirepro: EUR/AUD capped by 38.2%fib fibonacci, good to sell on rally

• EUR/AUD erased earlier gains on Monday  as worse-than-expected German Ifo data weighed on euro.

• German business sentiment took an unexpected downturn in December.  The institute's most recent survey indicated a decline in both expectations and current conditions.

• Technical signals show the pair is set to lose ground in the short-term as RSI is at 44.95 bearish, daily and weekly 5, 10 & 21 MAs heading lower  .

• Immediate resistance is located at 1.6326( 38.2%fib), any close above will push the pair towards 1.6363 ( 11DMA)

• Support is seen at 1.6216(23.6%fib) and break below could take the pair towards 1.6193 (May 19th low).

Recommendation: Good to sell on rally around 1.6300, with stop loss of 1.6440 and target price of 1.6220.
 

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