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FxWirePro: EUR/AUD slips lower, set to stay on back foot

• EUR/AUD slipped lower on Wednesday as euro crosses were pressured after US inflation data.

• U.S. CPI rose at an annual rate of 2.9% in December, in line with expectations. Markets cheered the core inflation number that rose by 3.2%, however was below forecasts..

• In France, consumer prices rose 1.8% year-on-year in December, while Spain's EU-harmonised 12-month inflation rate rose to 2.8%.

• EUR/AUD remains well below 38.2%fib,daily  close below 50%fib will  increase the scope for much bigger drop.

•   Immediate resistance is located at 1.6646(38.2%fib), any close above will push the pair towards 1.6796(23.6%fib)

• Support is seen at 1.6514(50 %fib ) and break below could take the pair towards 1.6470(lower BB).

Recommendation: Good to sell around 1.6540 , with stop loss of 1.6630 and target price of 1.6460
 

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