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.