FxWirePro:EUR/AUD capped by 5-DMA, good to sell on rallies
• EUR/AUD recovered some ground on Tuesday after the pair failed to break support at 1.5622 but weak eurozone sentiment helped cap EUR/AUD below 5-day MA. • EUR/AUD remains vulnerable to downside. A sharper increase abov…
• EUR/AUD recovered some ground on Tuesday after the pair failed to break support at 1.5622 but weak eurozone sentiment helped cap EUR/AUD below 5-day MA.
• EUR/AUD remains vulnerable to downside. A sharper increase above 1.5799 is needed to raise hopes for an uptrend.
• Technical signals are bearish as RSI is at 41, daily momentum studies 5, 9 and 10 DMAs are trending down.
•Immediate resistance is located at 1.5710 ( 5 DMA), any close above will push the pair towards 1.5790 (38.2 % fib).
• Support is seen at 1.5622 (23.6%fib ) and break below could take the pair towards 1.5622(Psychological level).
Recommendation: Good to sell around 1.5700, with stop loss of 1.5800 and target price of 1.5580.
