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

• EUR/AUD slipped sharply lower on Friday  as Australian dollar continued to advance following hotter than expected Australian CPI data.

• Australian consumer prices rose faster than expected in October, a new report showed on Wednesday, signaling stronger inflation and reinforcing expectations that the current policy easing cycle may be over.

• Looking ahead ,Australia’s Q3 GDP report  is due on December 3, which will offer insight into growth momentum.

•This will be followed by October balance of trade data on December 4, a key driver for the currency given Australia’s export-heavy economy. Any upside surprise in either release could reinforce bullish momentum.

•  Immediate resistance is located at 1.7774(SMA 20), any close above will push the pair towards 1.7962(Higher BB).

•  Support is seen at 1.7690(50%fib) and break below could take the pair towards 1.7593(Lower BB).

Recommendation: Good to sell around 1.7750, with stop loss of 1.7850  and target price of 1.7650