FxWirePro: EUR/AUD gains some upside momentum but still bearish
• EUR/AUD strengthened on Thursday as euro benefited from weak Australian dollar but gains were limited as investors focus turned to Eurozone and German PMI data. • EUR/AUD traded in range between 1.6525-1.6650 and the p…
• EUR/AUD strengthened on Thursday as euro benefited from weak Australian dollar but gains were limited as investors focus turned to Eurozone and German PMI data.
• EUR/AUD traded in range between 1.6525-1.6650 and the pair was last trading at 1.6623.
• The pair inability to hold gains above 21DMA , may increases the likelihood of a drop towards1.6500 level.
• Technicals highlight dowsiderisks. The 5, 9 and 11 day moving averages are trending south, daily RSI is pointing downwards at 46.
• Immediate resistance is located at 1.6687(38.2%fib), any close above will push the pair towards 1.6703(21DMA).
• Strong support is seen at 1.6526 (61.8% fib) and break below could take the pair towards 1.6445(Lower BB).
Recommendation: Good to sell around 1.6640, with stop loss of 1.6800 and target price of 1.6500
