• EUR/AUD drop extended towards 1.6000 on Wednesday as sellers were driven by upbeat risk appetite and US civil unrest.
• EUR/AUD dived below the 23.6% fib and trades last at 1.6170 (GMT 16:16)
• Any upside correction is likely to be temporary as barrier at 1.6292 (23.6% fib) is set to restricting higher move.
• Technical signals are bearish as RSI is at 44.31, daily momentum studies 5, 9 and 10 DMAs are trending down.
• On the upside, Immediate resistance is located at 1.6292 (23.6% fib), any close above will push the pair towards 1.6411 (5 DMA).
• Immediate support is seen at 1.6032 (200 WMA) and break below could take the pair towards 1.6000 (Psychological level).
Recommendation: Good to sell around 1.6180, with stop loss of 1.6400 and target price of 1.5900.
