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AUD/EUR: Unable To Sustain Break Of 20-Day EMA

AUD

AUD/EUR was unable to sustain a break of the 20-Day EMA (€0.6000) seen after yesterday's Q3 CPI report as waning risk sentiment and a fall in equities weighed.

  • In early dealing this morning the pair extended losses as RBA Gov Bullock noted that CPI "came out about where we thought it would be" (BBG). The cross sits at €0.5955/60, ~1.1% below its post-CPI levels.
  • Technically AUD/EUR remains in a downtrend. Bears now target a break of the 76.4% retracement of the Aug-Sep bull leg (€0.5925), which opens the YTD low (€0.5863) and €0.5758 a Fibonacci projection.
  • Bulls focus on a break of the 20-Day EMA and the high from 18 Oct (€0.6041). This opens the €0.61 handle and the 200-Day EMA (€0.6137).

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