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FxWirePro: EUR/AUD bulls need more gains to zero in on key fibo resistance

• EUR/AUD steadied around 1,6465  on Wednesday  as Australian dollar slipped lower  after a surprisingly soft reading on Australian inflation stoked bets for an earlier cut by RBA.

• Annual growth in consumer prices slowed to a two-year low of 4.1% in the fourth quarter, below forecasts of 4.3% and down sharply from 5.4% the previous quarter.

• A rally towards bigger resistance   zone is possible if bulls overcome resistance at 38.2%fib .

• Technical signals are bullish  as RSI is at 62, daily momentum studies  5,9 and 10 DMAs are trending up. 

• Immediate resistance is located at 1.6503(38.2%fib), any close above will push the pair towards 1.6611 (23.6%fib).

• Strong  support is seen at 1.6420(50%fib ) and break below could take the pair towards 1.6326( (61.8%fib).

Recommendation: Good to buy  around 1.6460, with stop loss of 1.6350 and target price of 1.6560

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