FxWirePro: EUR/AUD drifts lower,could be on verge of a bigger drop
• EUR/AUD declined on Wednesday as Australian dollar was supported by strong Australian building approvals data in March.
•Data showed approvals to assemble new homes blew away figures with an ascent of 17.4% in March, affirming a significant blast was in progress.
•Approvals to construct new houses were up an amazing 61% on a year earlier at a record peak, while the value of commercial buildings likewise hit an unsurpassed top.
•The pair is approaching ichimoku cloud base at 1.5469,a daily close below which will accelerate towards 1.5417 (Lower BB).
• From a technical viewpoint, the moving averages are pointing downwards, while the RSI is strongly bearish at 47.
• Immediate resistance is located at 1.5503 ( 23.6%fib), any close above will push the pair towards 1.5558 ( 11DMA).
• Strong support is seen at 1.5469 (Ichimoku cloud base) and break below could take the pair towards 1.5417 (Lower BB).
Recommendation: Good to sell around 1.5480, with stop loss of 1.5560 and target price of 1.5400.