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FxWirePro: EUR/AUD drop accelerates after U.S. payrolls miss, good to sell on rally

• EUR/AUD declined on Friday as the pair attracted sellers  after U.S. employment data indicated job growth slowed massively in August.

• Nonfarm payrolls increased by 235,000 in August, well short of the 728,000 forecast.

• The pair currently is approaching support at 1.5921 (23.6%fib ). A break under 1.5921 would unmask 1.6000 level in the short term.

• Technical signals are bearish as RSI is at 40, daily momentum studies  5, 9 and 10 DMAs are trending down. 

• Immediate resistance is located at 1.6002 ( 50DMA), any close above will push the pair towards 1.6045 (38.2%fib)

• Strong support is seen at 1.5921 (23.6%fib ) and break below could take the pair towards 1.5847(Lower BB).

Recommendation: Good to sell on rally around 1.5960, with stop loss of 1.6100 and target price of 1.5470.
 

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