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FxWirePro: EUR/AUD neutral in the near-term, scope for downward resumption


• EUR/AUD strengthened  on Monday  but gains were limited as market seeked fresh factors for further direction.

• EUR/AUD traded as high as 1.6540  before retreating slightly to trade at 1.6522  .

• EUR/AUD remains below 5DMA),daily  close below 1.6460 (38.2% fib) will increase the scope for much bigger drop.

• Technical signals are bearish as RSI is at 43, daily momentum studies  5, 9 and 14 DMAs are trending south. 

• Immediate resistance is located at 1.6540(38.2%fib ), any close above will push the pair towards 1.6562(Nov 2nd  high).

• Strong support is seen at 1.6460 (38.2% fib) and break below could take the pair towards 1.6402 (Oct 2nd low).

Recommendation: Good to sell  around 1.6530, with stop loss of 1.6600 and target price of 1.6450


 

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