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FxWirePro: EUR/AUD recovery facing a steep rock, likely to falter

• EUR/NZD recovered some ground on Wednesday but  failed to hold onto gains as Fed-ECB policy divergence kept the pair under bearish pressure.

• Pair recovered to 1.6165 but is unable to find traction,failure to close above 38.2%fib   is bearish sign

• EUR/ NZD is trading   close to the 23.6% fib. A daily close under 1.6115 (23.6% fib)   should lead to bigger losses in coming sessions.

• Technical signals are bearish as RSI is at 42, daily momentum studies  5, 9 and 10 DMAs are trending down. 

• Strong resistance is located at 1.6175( 5DMA), any close above will push the pair towards 1.6241( 38.2%fib).

• Immediate support is   at 1.6115 (23.6% fib)   and break below could take the pair towards 1.6079(Lower BB).

Recommendation: Good to sell around 1.6170  , with stop loss of 1.6250  and target price of 1.6080
 

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