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Fxwirepro:EUR/AUD neutral in the near-term, scope for downward resumption

• EUR/AUD drop extended towards 1.6000 on Wednesday as sellers were driven by upbeat risk appetite and US civil unrest.

• EUR/AUD dived below the 23.6% fib and trades last  at 1.6170 (GMT 16:16)

• Any upside correction is likely to be temporary as barrier at 1.6292 (23.6% fib) is set to restricting higher move.

• Technical signals are bearish as RSI is at 44.31, daily momentum studies  5, 9 and 10 DMAs are trending down. 

• On the upside, Immediate resistance is located at 1.6292 (23.6% fib), any close above will push the pair towards 1.6411 (5 DMA).

• Immediate support is seen at 1.6032 (200 WMA) and break below could take the pair towards 1.6000 (Psychological level).

Recommendation: Good to sell   around 1.6180, with stop loss of 1.6400 and target price of 1.5900.
 

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