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FxWirePro: EUR/AUD set for increasing upside potential, 1.5700 beckons

• EUR/AUD rally extended above 1.5600 on Thursday as Australian dollar was undermined by a slide in oil and other commodity prices.

• Commodity-linked Australian dollar was hurt by fall  in copper,  crude, and dalian iron ore  prices.

• EUR/AUD bulls  confidence is running high, a test of the  50%fib highly seem s likely.

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

• Immediate resistance is located at 1.5733 (50%fib), any close above will push the pair towards 1.5779 (Higher BB).

• Immediate support is seen at 1.5550 (38.2% fib) and break below could take the pair towards 1.5450 (23.6%fib).

Recommendation: Good to buy on dips around 1.5600, with stop loss of 1.5500 and target price of 1.5700

 

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