• 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.

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