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FxWirePro: EUR/AUD rebounds towards 1.4450, room for further gains

• EUR/AUD rebounded  on Friday as the euro was lifted by hawkish ECB talk and soft U.S. data but it retreated well off its highs.

• EUR/AUD spiked up to 1.4450 on  after U.S. data indicated inflation moderated further and a Reuters ECB sources story said policymakers want to discuss a 75bp hike in September.

• From a technical viewpoint, Daily bull candle in place, is a very strong reversal signal ,and spike up as pierced the 5-DMA and 38.2%fib resistance reinforcing bull signals

• Immediate resistance is located at 1.4493 (14DMA), any close above will push the pair towards 1.4556 (50%fib).

• Immediate support is seen at 1.4430 (38.2%fib) and break below could take the pair towards 1.4268 (23.6%fib).

Recommendation: Good to buy on dips around 1.4440, with stop loss of 1.4330 and target price of 1.4530.
 

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