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FxWirePro: EUR/AUD drifts lower, could be on verge of bigger drop

• EUR/AUD dipped  on Wednesday  as investors moved back into riskier assets, supporting the Australian dollar.

• U.S. officials downplayed immediate concerns about oil and gas supply disruptions, the ongoing Iran conflict continues to create uncertainty in energy markets.

• Analysts are closely monitoring developments, as any escalation could indirectly affect commodity-linked currencies like the Australian dollar.

• Market attention now turning to Australia’s January trade balance, expected at 0030 GMT. Analysts  predicts a deficit of 3.9 billion AUD.

• Technical signals are bearish as RSI is at 27, momentum studies  11,14  and 21 DMAs are trending down. 

• Strong  resistance is located at 1.6594(38.2%fib), any close above will push the pair towards 1.6668(SMA 20)

• Immediate support is seen at 1.6437 (23.6% fib) and break below could take the pair towards 1.6366(Lower BB).

  Recommendation: Good to sell   around 1.6440, with stop loss of 1.6500 and target price of 1.6380

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