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FxWirePro:EUR/AUD reverses recent rally, bias back to downside

• EUR/AUD declined on Wednesday as higher commodity prices boosted demand for commodity linked Australian dollar.

• Oil prices jumped to their highest in more than two years after an industry report on U.S. crude inventories reinforced views of a tightening market as travel picks up in Europe and North America.

• At GMT 16:14, the pair was trading down 0.32 percent   at $1.5746

• Technical signals are bearish as RSI is heading down  at 49, daily momentum studies  5 and 9   DMAs are trending down. 

• Immediate resistance is located at 1.5788 ( 38.2%fib), any close above will push the pair towards 1.5839(Higher BB)

• Strong support is seen at 1.5722 (50 %fib ) and break below could take the pair towards 1.5669(Lower BB).

Recommendation: Good to sell on rally around 1.5750, with stop loss of 1.5840 and target price of 1.5680.
 

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