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FxWirePro: EUR/AUD rebounds ahead ECB's October meeting, critical resistance lies ahead

• EUR/AUD rebounded strongly  on Wednesday as the pair attracted buyers   ahead of the ECB's policy announcement.

• Investors do not expect the European Central Bank to raise interest rates when it meets this week, but are still prepared for borrowing costs to remain high.

• A daily close above 38.2%fib will further improve the technical outlook, and open the possibility of a rally towards 1.7200 level.

• From a technical viewpoint, RSI  is strongly bullish at 56, daily momentum studies, 5, 10 and 11 daily  MAs are pointing higher.

• Immediate resistance is located at 1.6735 (38.2%fib), any close above will push the pair towards 1.6856(23.6%fib).

• Immediate support is seen at 1.6633(50%fib) and break below could take the pair towards 1.6603(21DMA).

Recommendation: Good to buy on dips around 1.6720, with stop loss of 1.6600 and target price of 1.6800
 

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