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FxWirePro: EUR/AUD uptrend gains momentum, as positive sentiment builds for euro

• EUR/AUD rally extended towards 1.6700 on Friday as euro was boosted after data showed Euro zone economic sentiment  improved by more than expected   in May.

• Economic sentiment in Eurozone improved by more than expected to a three-year high in May, with the strongest gains in services, retail and among consumers as governments eased pandemic restrictions..

•EUR/AUD bulls confidence is running high, a test of the  1.5916 (23.6%fib) highly seems likely.

•From a technical viewpoint, RSI  is strongly bullish at 66, daily momentum studies, 5, 10 and 21 daily  MAs all climb.

• Immediate resistance is located at 1.5854(Higher BB), any close above will push the pair towards 1.5916 (23.6%fib).

• Immediate support is seen at 1.5806 (38.2% fib) and break below could take the pair towards 1.5768 (5 DMA).

Recommendation: Good to buy on dips around 1.5800, with stop loss of 1.5700 and target price of 1.5880.

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