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FxWirePro: EUR/AUD bulls undeterred, eyes 23.6%fib resistance

• EUR/AUD strengthened   on Wednesday   as signs of cooling US inflation bolstered bets that the U.S. Federal Reserve may pause its policy tightening.

• ECB remains favored to hike rates by at least 75bp into year-end versus the Fed not fully priced to hike 25bp in May before roughly 50bp of cuts by December.

• EUR/AUD remains  strongly bullish, only a break and daily close below 38.2%fib  support will shift bias to the downside

• Technical are bullish, daily RSI is at 67, daily momentum studies  11and 14 DMAs are trending up. 

• Immediate resistance is located at 1.6439(Daily high), any close above will push the pair towards 1.6505 (23.6%fib).

• Strong support is seen at 1.6391 (5DMA) and break below could take the pair towards 1.6296 (38.2%fib).

Recommendation: Good to buy around 1.6400, with stop loss of 1.6310 and target price of 1.6480

 

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