• EUR/AUD recovered some ground on Wednesday as the pair was aided by profit-taking on shorts after (23.6% fib) support holds.
• The pair is currently approaching resistance at 1.7565 (38.2% fib). Resistance at 1.7565 is likely to cap further upside in the pair.
• Technical signals are bearish as RSI is at 41, daily momentum studies 5, 9 and 10 DMAs are trending down.
• On the upside, Immediate resistance is located at 1.7401 ( 9 DMA), any close above will push the pair towards 1.7565 (38.2 % fib).
• On the downside, support is seen at 1.7168 (5 DMA ) and break below could take the pair towards 1.7004 (23.6% fib).
Recommendation: Recommendation: Good to sell on rally around 1.7400, with stop loss of 1.7565 and target price of 1.7000.
