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

• EUR/AUD dipped on Friday   as euro came under pressure    following weaker-than-expected German retail sales   and softer German inflation data

• German inflation remained flat year-on-year in January at 2.8%, preliminary data from the federal statistics office showed on Friday.

• Germany's retail sales increased by 1.8% year-on-year (YoY) in December, falling short of the anticipated 2.5% growth.

• EUR/AUD remains under pressure due to weak economic data, a dovish stance from the European Central Bank (ECB), and negative sentiment from market positioning.

• Immediate resistance is located at 1.6675 (Daily high), any close above will push the pair towards 1.6777 (23.6% fib).

• Strong support is seen at 1.6634(38.2% fib) and break below could take the pair towards 1.6503(50% fib )

Recommendation: Good to sell around 1.6700 with stop loss of 1.6800 and target price of 1.6600

 

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