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FxWirePro: EUR/AUD pauses decline, downside risk remains

• EUR/AUD edged higher, but the gains were limited as investors took the opportunity to book profits following a three-day decline.

• Focus is now shifting to Federal Reserve Chairman Jerome Powell, who is set to speak at the central bank’s crucial annual meeting in Jackson Hole, Wyoming, later this week.

• Looking ahead, the broader risk environment is expected to influence market movements leading up to the Jackson Hole symposium.

• Technical signals are bearish as RSI is at 49, daily momentum studies  5, 9 and 10 DMAs are trending down. 

•  Immediate resistance is located at 1.6598(38.2% fib), any close above will push the pair towards 1.6706 (Jul 31st high)

• Strong support is seen at 1.6449(50% fib) and break below could take the pair towards 1.646 (Lower BB).

  Recommendation: Good to sell on rally around 1.6510  , with stop loss of 1.6600  and target price of 1.6550  
 

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