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FxWirePro:EUR/AUD key support held, downside risk remains

• EUR/AUD initially dipped on weaker  euro zone business activity data but recovered some ground on profit talking .

• July composite PMIs showed an unexpected contraction in euro zone stoking concerns about recession in Eurozone.

• At GMT 18:39, the pair was trading down 0.12 percent   at $1.4757.

• Technical signals are bearish as RSI is heading down  at 56, daily momentum studies  5, 9 and 1 DMAs are trending down. 

• Immediate resistance is located at 1.4798 (5 DMA), any close above will push the pair towards 1.4873 (38.2 %fib)

• Support is seen at 1.4653 (23.6 %fib ) and break below could take the pair towards 1.4602 (Lower BB).

Recommendation: Good to sell on rally around 1.4770, with stop loss of 1.4860 and target price of 1.4650.

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