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FxWirePro:EUR/AUD downside pressure builds, key support level in focus

• EUR/AUD declined on Monday  as  higher commodity and  equity gains boosted Australian dollar

• Oil prices rose following reports that production at Norway's Johan Sverdrup oilfield had been halted, adding to earlier gains driven by the escalation of the Russia-Ukraine war.

• Looking ahead, Investors awaited Euro zone consumer price figures for October are due on Tuesday, and November's flash PMIs on Friday..

•  Technical signals are bearish as RSI is heading down  at 36, daily momentum studies  5, 9 and 1 DMAs are trending down. 

•  Immediate resistance is located at 1.6290(50 %fib), any close above will push the pair towards 1.6349(61.8 %fib)

• Strong support is seen at 1.6235(38.2 %fib ) and break below could take the pair towards 1.6168(23.6 %fib).

Recommendation: Good to sell on rally around 1.6300, with stop loss of 1.6350 and target price of 1.6190.
 

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