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FxWirePro: EUR/AUD downside pressure builds, key support level in focus

• EUR/AUD declined sharply on Monday  as buoyed risk sentiment and rising commodities prices helped Australian dollar .

• Investors are now focused on US employment reports and Fed policy meeting, both of which pose potential risks.

• The pair currently is approaching support at 23.6% fib. A break under  would unmask 1.6200 level in the short term.

• Technical signals are bearish as RSI is at 34, daily momentum studies  5, 9 and 10 DMAs are trending down. 

•  Immediate resistance is located at 1.6558(38.2% fib), any close above will push the pair towards 1.6441(50% fib)

• Support is seen at 1.6288(Daily low ) and break below could take the pair towards 1.6266 (23.6% fib).

  Recommendation: Good to sell   around 1.6330 with stop loss of  1.6480 and target price of 1.6230.
 

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