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FxWirePro: EUR/AUD set for increasing upside potential, 1.6200 beckons

• EUR/AUD rallied   on Tuesday   after less hawkish than expected RBA minutes weighed on Australian dollar.

• Minutes revealed the decision to hike in June was  finely balanced,RBA noted slowing consumer spending and risks previous hike could lead to a sharper slowdown.

• EUR/AUD made strong gains , but bulls need further moves higher.A break and daily close above 23.6%fib would be a very bullish sign.

• 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 1.6143(Daily high), any close above will push the pair towards 1.6161 (23.6%fib).

• Immediate support is seen at 1.6026 (38.2%fib) and break below could take the pair towards 1.5910(50%fib).

Recommendation: Good to buy on dips around 1.6090, with stop loss of 1.5900 and target price of 1.6200
 

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