FxWirePro: EUR/AUD neutral in the near term ,scope for further downside

• EUR/AUD dipped on Tuesday   as investors grew increasingly worried about the state of finances in countries around the world.

• France’s 30-year government bond yields hit their highest levels in more than 16 years on Tuesday at around 4.5%, while yields on 30-year German bonds hit a fresh 14-year high at about 3.4%.

• In the UK, 30-year gilt yields notched their highest mark since 1998, as investors looked warily ahead to the government's autumn budget plans.

•On the data front, euro zone inflation rises 2.1% YoY in August, staying near ECB’s 2% target, boosting bets on steady rates next week

• Technical signals are bearish as RSI is at 44, daily momentum studies  5,9,21 DMA are trending south. 

• Immediate resistance is located at 1.7940(SMA 20), any close above will push the pair towards 1.8092  (Higher BB).

• Strong support is seen at 1.7794 (50%fib) and break below could take the pair towards 1.7764 (Lower BB).

Recommendation: Good to sell around 1.7860 with stop loss of 1.7940  and target price of 1.7760