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FxWirePro:EUR/AUD neutral in the near-term, scope for downward resumption

• EUR/AUD initially gained on Tuesday but earlier gains faded  as investors awaited the outcome of the midterm elections that will determine control of Congress.

• Markets will also closely watch consumer price data for October, due on Thursday, for indications about the Federal Reserve’s future monetary policy path.

• EUR/AUD breaks below the 38.2%fib at 1.5388, it will increase downward pressure with initially target  at 0.9744.

• Technical signals show the pair could lose more ground in the short-term as RSI is turning  bearish, daily momentum studies 11, 14 and 21 DMAs are trending down.

• Immediate resistance is located at 1.5519 ( 21DMA), any close above will push the pair towards 1.5626 (23.6%fib).

• Immediate support is seen at 1.5388(38.2%fib) and break below could take the pair towards 1.5318 (Lower BB).

Recommendation: Good to sell   around 1.5450, with stop loss of 1.5550 and target price of 1.5320
 

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