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FxWirePro:EUR/AUD reverses from early weakness but downside risk remains

• EUR/AUD initially dipped on Monday but recovered some ground as investors were cautious ahead of a Reserve Bank of Australia speech and NAB business conditions on Tuesday.

• EUR/AUD fails to break support at 1.5989 (38.2%fib) and recovers towards  1.6044 .

• The current mild downward pressure is deemed intact as long as the pair does not move above 50% fib resistence.

• Technical signals are bearish as RSI is  at 47, momentum studies, 5, 10 & 21 DMAs in bearish alignment.  

• Immediate resistance is located at 1.6038 ( 11 DMA), any close above will push the pair towards 1.6089 (50% fib)

• Strong support is seen at 1.5989 (38.2%fib)and break below could take the pair towards 1.5911 (Sep 11th low).

Recommendation: Good to sell  around 1.6040, with stop loss of 1.6120 and target price of 1.5960.
 

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