• EUR/AUD dipped on Wednesday, dropping from the 11 year high of 1.8149.
• The pair failed to breach a key 50% Fibo retracement at 1.7448 as the pair was severely overbought.
• At GMT 16:04, the pair was trading 0.10% lower at 1.7332 ,after hitting session high at 1.7481.
• The pair could fall further and only a break of 1.7610 (61.8% fib) would could see move back towards 1.8000
• Technical signals show the pair could lose some ground in the short-term as RSI is at 64 overbought mark, MACD is nearing zero line, pointing that pull back is on cards.
• On the upside, Immediate resistance is located at 1.7448 ( 50% fib), any close above will push the pair towards 1.7610 (61.8% fib)
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• On the downside, support is seen at 1.7281 (38.2 % fib ) and break below could take the pair towards 1.7081 (23.6% fib)
Recommendation: Good to sell on rally around 1.7500, with stop loss of 1.7850 and target price of 1.7150.
