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FxWirePro:EUR/AUD dips below lower range, bearish bias increases

• EUR/AUD declined on Thursday   as bounce in iron ore prices boosted the commodity-linked Australian dollar. 

• Iron ore futures rose on Thursday to their highest levels in three weeks on hopes of a recovery in Chinese demand for the steelmaking

• At GMT 19:24, the pair was trading down 0.52 percent  at  1.6012.

• Technical signals are bearish as RSI is heading down  at 44, daily momentum studies  5, 9 and 1 DMAs are trending down. 

• Immediate resistance is located at 1.6066 ( 38.2%fib), any close above will push the pair towards 1.6139 (50%fib)

• Strong  support is seen at 1.5978 (23.6 %fib ) and break below could take the pair towards 1.5942 (Lower BB).

Recommendation: Good to sell   around 1.6020, with stop loss of 1.6100 and target price of 1.5930.
 

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