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FxWirePro:EUR/AUD dips below lower range, bearish bias increases

•EUR/AUD declined on Monday    as upbeat Australian retail sales data ,Iron-ore , equity gains buoyed risk  sensitive Australian dollar.

•Strong Australian Sept retail sales gave more ammunition for 25 bp RBA hike Nov 7, market now pricing in a 60% chance RBA will hike next week.

•  EUR/AUD probed 23.6% fib support  zone  and recovered towards 1.6647 level, Break below 23.6% fib  support zone will open path towards towards 1.6550 level.

• Technical signals are bearish as RSI is heading down  at 49, daily momentum studies  5, 9 and 11 DMAs are trending down.

•On the upside, Immediate resistance is located at 1.6657 ( 50DMA), any close above will push the pair towards 1.6700 (38.2% fib)

•Strong  support is seen at 1.6598(23.6% fib) and break below could take the pair towards 1.6547 (Oct 12th low).

Recommendation: Good to sell   around 1.6660 with stop loss of 1.6750  and target price of 1.6580

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