• FxWirePro: EUR/AUD consolidates break out at 'triangle top', scope for further upside

    Source: FxWire Pro - Technicals / 06 Mar 2018 03:31:37   Eastern Standard Time

    • EUR/AUD is trading in a 'Symmetric Triangle' pattern and has shown a decisive breakout at 'Triangle Top'.
    • Aussie dented on Australia January Retail Sales miss and lower commodities prices. RBA policy decision had little impact.
    • The RBA kept rates unchanged as expected and the policy statement offered no hawkish or dovish surprise.
    • Technical indicators on weekly charts support upside in the pair. RSI strength seen at 68 levels and momentum studies are bullish.
    • Upside is currently capped below 78.6% Fib retrace of 1.6585 to 1.3626 fall at 1.5952.
    • Break above will find next major resistance at 1.6247 (88.6% Fib) ahead of 1.6252 (2016 high).
    • On the flipside, 20-DMA is strong support at 1.5727, break below will see further weakness.

    Recommendation: Good to go long on dips around 1.5850/60, SL: 1.5730, TP: 1.59/ 1.5950/ 1.6075.

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