FxWirePro: EUR/AUD sustains gains as uptrend remains strong

• EUR/AUD rose sharply  on Monday  as China economy concerns and  lower commodities weighed on Australian dollar.

•  A key political meeting in China last week failed to provide details on stimulus measures despite the struggling economy, dampening prospects for metal demand.

• Copper prices fell to their lowest level in over three months on Monday due to concerns about demand and the absence of new stimulus measures in China, the largest consumer.

• Scope is growing for much bigger gains to retest the key  fibo level 1.6418 Fibo, Only a daily close back under the Ichimoku cloud would be negative.

• Immediate resistance is located at 1.6418(23.6% fib), any close above will push the pair towards 1.6494(30th April high).

• Strong support is seen at 1.6352(38.2% fib) and break below could take the pair towards 1.6295(50% fib).

Recommendation: Good to buy  around 1.6380, with stop loss of 1.6260 and target price of 1.6450