• EUR/AUD declined on Wednesday as weaker-than-expected November ZEW reports weighed on euro.
• German investor sentiment dropped more than expected in November as a second wave of coronavirus infections and a partial lockdown to contain the disease increased uncertainty.
• Drop from Nov. 10 daily high extends today and the 23.6%fib gets pierced.
• Technical signals show the pair could lose more ground in the short-term as RSI is at 37 bearish, daily momentum studies 9, 10 and 11 DMAs are trending down.
• On the upside, Immediate resistance is located at 1.1682( 23.6%fib), a close above will push the pair towards 1.6237 (5 DMA).
• On the downside, support is seen at 1.6100 (Psychological level) and break below could take the pair towards 1.6038 (lower BB).
Recommendation: Good to sell on rallies around 1.6200, with stop loss of 1.6330 and target price of 1.6120.
