Fxwirepro:eur/aud rises to 1 -1/2 month high, good to buy on dips
Source: FxWire Pro - Technicals / 31 Jul 2020 13:44:13 America/New_York
• EUR/AUD strengthened on Friday as investors looked past a severe economic contraction in the euro zone.
• Euro zone economy recorded its deepest contraction on record in the second quarter while the bloc’s inflation unexpectedly ticked up in July.
• EUR/AUD bulls confidence is running high, a test of 1.6627 (38.2% fib) highly seems likely.
• From a technical viewpoint, RSI is strongly bullish at 60, daily momentum studies, 5, 10 and 11 daily MAs all climb.
• Immediate resistance is located at 1.6582 (200 DMA), any close above will push the pair towards 1.6627 (38.2% fib).
• Immediate support is seen at 1.6417 (23.6% fib) and break below could take the pair towards 1.6362 (9 DMA).
Recommendation: Good to buy on dips around 1.6500, with stop loss of 1.6330 and target price of 1.6600.© FxWire Pro 2020. All rights reserved. The FxWire Pro content received through this service is the intellectual property of FxWire Pro or its third party suppliers. Republication or redistribution of content provided by FxWire Pro is expressly prohibited without the prior written consent of FxWire Pro, except for personal and non-commercial use. Neither FxWire Pro nor its third party suppliers shall be liable for any errors, omissions or delays in content, or for any actions taken in reliance thereon.