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FxWirePro:EUR/AUD pauses for breath, but the downtrend remains strong

• EUR/AUD initially gained but rally fizzled out as higher oil prices and increased risk appetite boosted Australian dollar against euro.

• Oil rose 0.79%, helped by short-covering and a report Iran may seek to curb exports.Gold dropped 0.62% and copper fell 1.39% as the dollar strengthened.

• Technical signals are bearish as RSI is heading down  at 46, daily momentum studies  5, 9 and 11 SMAs are trending down. 

• Immediate resistance is located at 1.6296( 38.2%fib), any close above will push the pair towards 1.6388 (50%fib)

• Strong support is seen at 1.6181 (23.6 %fib ) and break below could take the pair towards 1.6102 (Oct 7th low).

Recommendation: Good to sell on rally around 1.6290, with stop loss of 1.6370 and target price of 1.6200
 

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