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

• EUR/AUD traded in tight range  on Monday  as investors  cautiously awaited slew of economic indicators this week from Eurozone .
• This week, investors will look to final inflation data and flash PMI readings for the eurozone, as well as Germany's fourth-quarter GDP, to assess the continent's economic situation.

• A daily close above 1.6478 (32.8 %fib )will further improve the technical outlook, and open the possibility of a drop towards 1.6400 level.

•  Technical signals are bearish as RSI is heading down  at 49, daily momentum studies  5, 9 and 1 DMAs are trending down. 

• Immediate resistance is located at 1.6503(Daily high), any close above will push the pair towards 1.6564(23.6%fib)

• Strong support is seen at 1.6478 (32.8 %fib ) and break below could take the pair towards 1.6402 (Lower BB).

Recommendation: Good to sell   around 1.6490, with stop loss of 1.6600  and target price of 1.6430
 

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