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FxWirePro: EUR /AUD dips below lower range, bearish bias increases

• EUR /AUD slipped below 1.6400 level on Tuesday  as Australian dollar continued to gain traction against euro  benefited from help provided by iron-ore and gold rally
 
• Iron ore futures prices continued to rise for a second consecutive session on Tuesday,while gold hit record high on buying momentum, geopolitical risks.

• EUR/AUD chart has taken a turn for the worse after today’s drop.Overall risk is growing for a bigger drop to towards 1.6300 level.

• Technical signals are bearish as RSI is   at 35 daily momentum studies    9, 11 and 21 DMAs are trending down. 

• Immediate resistance is located at 1.6436 (50% fib), any close above will push the pair towards 1.6446 (5EMA).

• Immediate support is seen at 1.6378 (38.2%fib) and break below could take the pair towards 1.6324(Jan 12th low).

Recommendation: Good to sell around 1.6400, with stop loss of 1.6480 and target price of 1.6320

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