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FxWirePro:EUR/AUD close below key fibo adds to the bearish bias, good to sell on rally

• EUR/AUD declined on Monday  as rally in commodity prices spurred flows into Australian dollar

• Australian inflation data is due on Wednesday and is likely to set the tone for Australian dollar. Economists polled expect  Australian CPI to show a 1.8% year-on-year for the third quarter.

• Technical signals are bearish as RSI is heading down  at 30, daily momentum studies  5, 9 and 11 DMAs are trending down. 

• Immediate resistance is located at 1.5594 ( 38.2%fib), any close above will push the pair towards 1.5627 (14 DMA)

• Strong support is seen at 1.5460 (23.6 %fib ) and break below could take the pair towards 1.5360(Lower BB).

Recommendation: Good to sell on rally around 1.5520, with stop loss of 1.5630 and target price of 1.5430.
 

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