• EUR/AUD erased earlier gains on Wednesday as doubts about the global recovery from the pandemic kept the pair under downside pressure.
• At (GMT 16:29 ),the pair was trading at 1.6210, not far from yesterday’s low of 1.6060 .
• Selling pressure will remain in the short-term, only a move above 1.6624 ( 23.6% fib)
strong resistance would indicate the weakness in the pair has run out.
• From a technical viewpoint, the moving averages are pointing downwards, while the RSI is strongly bearish at 39.
• On the upside, Immediate resistance is located at 1.6354 (11 DMA), any close above will push the pair towards 1.6624 ( 23.6% fib)
• On the downside, support is seen at 1.6165 (June 5th low) and break below could take the pair towards 1.6060 (Lower BB).
Recommendation: Good to sell around 1.6250, with stop loss of 1.6500 and target price of 1.6100.
