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FxWirePro: EUR/AUD extends gains, faces 38.2%fib resistance

• EUR/AUD strengthened on Thursday  as soft commodity prices amid global growth concerns weighed on Australian dollar.

• The Reserve Bank of Australia (RBA)   Statement of Monetary Policy is  awaited on  Friday for more clues on   rates

• A rally towards bigger resistance at 1.6845 is possible if EUR/AUD bulls overcome resistance at 38.2%fib. 

• From a technical viewpoint, RSI  is strongly bullish at 51, daily momentum studies, 5, 10 and 11 daily  MAs are pointing higher.

• Immediate resistance is located at 1.6779(38.2%fib), any close above will push the pair towards 1.6845(Oct 24th high).

• Immediate support is seen at 1.6678(50%fib) and break below could take the pair towards 1.6623(50DMA).

Recommendation: Good to buy on dips around 1.6750, with stop loss of 1.6650 and target price of 1.6830

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