FxWirePro: EUR/AUD falls below 1.6200 level, plunge to test a key fibo grows

• EUR/AUD dipped  on Wednesday    as Australian dollar firmed as markets priced in a March 17 rate hike by the Reserve Bank of Australia.

• Rate hike expectations strengthened after remarks from RBA Deputy Governor Andrew Hauser on rising oil prices and inflation.

•  Oil supply fears persisted despite a proposal by the International Energy Agency to release reserves, with Brent up 5.4% and WTI gaining 5.5%..

• Investors now await U.S. initial jobless claims on Thursday, a Q4 Gross Domestic Product update, and January Core Personal Consumption Expenditures Price Index data on Friday.

• Technical signals are bearish as RSI is at 25, momentum studies  11,14  and 21 DMAs are trending down. 

• Strong  resistance is located at 1.6320(23.6% fib), any close above will push the pair towards 1.6447(50%fib)

• Immediate support is seen at 1.6159 (23.6% fib) and break below could take the pair towards 1.6057(Lower BB).

  Recommendation: Good to sell   around 1.6200, with stop loss of 1.6300 and target price of 1.6120