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FxWirePro:EUR/AUD upside limited, scope for a dive through a key fibo

• EUR/AUD initially gained but gave ground  after data showed the downturn in the German economy has worsened in September.

• S&P Global's flash composite Purchasing Managers' Index (PMI)fell to 45.9 in September from August's final reading of 46.9.

• The pair  might fall towards  1.4750 due to recession fears as Europe's largest economy looks set to contract in the third quarter.

• Technical signals are bearish as RSI is heading down  at 45, daily momentum studies  5, 9 and 11 DMAs are trending down. 

• Immediate resistance is located at 1.4861( 38.2% fib), any close above will push the pair towards 1.4964(23.6%fib)

• Support is seen at 1.4783(50%fib ) and break below could take the pair towards 1.4691(61.8%fib).

Recommendation: Good to sell on rally around 1.4860, with stop loss of 1.4960 and target price of 1.4780.
 

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