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FxWirePro:EUR/AUD extends drop, faces 38.2%fib support

• EUR/AUD declined on Thursday  as   improved  economic data and higher commodities prices supported Australian dollar.

• In March, the final reading of Australia's Judo Bank Services  PMI rose to 54.4 from the previous month's 53.5, as per the latest data released by Judo Bank and S&P Global on Thursday.

• EUR/AUD chart has taken a turn for the worse after   todays drop. Overall risk growing for a bigger drop to towards 1.6400 level

•  Technical signals are bearish as RSI is heading down  at 39, daily momentum studies  5, 9 and 11 DMAs are trending down. 

•  Immediate resistance is located at 1.6491 ( 50% fib), any close above will push the pair towards 1.6509(9EMA)

• Support is seen at 1.6420(38.2%fib ) and break below could take the pair towards 1.6345(Jan 30th low).

Recommendation: Good to sell on rally around 1.6460, with stop loss of 1.6550 and target price of 1.6400

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