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FxWirePro:EUR/AUD shorts maintain the advantage ,expect a bigger drop

• EUR/AUD declined on Wednesday as euro was  hurt by the risk aversion as well as concerns over slow growth in the euro zone.

• ECB Vice-President Luis de Guindos said the central bank is not almighty in boosting euro zone growth, as the weakness is mainly due to structural issues rather than just monetary factors

• Meanwhile in its annual Financial Stability Review, ECB pointed out that growing geopolitical tensions and policy uncertainties are increasing risks to sovereign stability.

• Technical signals are bearish as RSI has turned sharply lower, daily momentum studies  5, 9 and 1 DMAs are trending down. 

•  Immediate resistance is located at 1.6252(50 %fib), any close above will push the pair towards 1.6312(61.8%fib)

• Support is seen at 1.6192 (38.2 %fib ) and break below could take the pair towards 1.6111(23.6 %fib).

Recommendation: Good to sell   around 1.6210 , with stop loss of 1.6320 and target price of 1.6130.


 

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