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FxWirePro: EUR/AUD drifts lower, could be on verge of a bigger drop

• EUR/AUD declined on Tuesday  as   Australian dollar was supported by another hawkish steer from RBA chief Bullock

• Australia's top central banker on Tuesday reaffirmed that monetary policy in Australia was restrictive and working to dampen demand, though inflation in the service sector was proving sticker than hoped.

• EUR/AUD chart has taken a turn for the worse after todays   drop.Overall risk is growing for a bigger drop towards 1.6450.

 • From a technical viewpoint, the moving averages are pointing downwards, while the RSI  is   bearish at 40.

• Immediate resistance is located at 1.6578 (38.2%fib), any close above will push the pair towards 1.6643 ( 9DMA).

• Strong support is seen at 1.6517 (Daily low) and break below could take the pair towards 1.6468 (23.6%fib).

Recommendation: Good to sell around 1.6530, with stop loss of 1.6630 and target price of 1.6450

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