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FxWirePro:EUR/AUD extends drop, faces 38.2 %fib support

• EUR/AUD declined on Wednesday as the Australian dollar gained strength against the euro following data that showed a slight increase in the Australian  CPI  for July.

• Data from the Australian Bureau of Statistics on Wednesday showed its monthly consumer price index (CPI) rose at an annual pace of 3.5% in July,   above market forecasts of 3.4%.

• At GMT 17:57, the pair was trading down 0.30 percent   at 1.6414.

• Technical signals are bearish as RSI has turned sharply lower, daily momentum studies  5, 9 and 1 DMAs are trending down. 

• Immediate resistance is located at 1.6475 ( Daily high), any close above will push the pair towards 1.6529(50%fib)

• Support is seen at 1.6389 (38.2 %fib ) and break below could take the pair towards 1.6312(Lower BB).
Recommendation: Good to sell   around 1.6430 , with stop loss of 1.6500and target price of 1.6350
 

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