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FxWirePro:EUR/AUD bulls gear up for next leg higher, eyes 1.6950 level

• EUR/AUD rally extended towards 1.6900  on Tuesday   after data showed German investor morale brightened unexpectedly in August

• ZEW's economic sentiment index rose to -12.3 points from -14.7 points in July. Analysts polled   had expected sentiment to stagnate in August with a reading of -14.7.

• From a technical viewpoint, RSI  is strongly bullish at 65, daily momentum studies, 5, 10 and 21 daily  MAs all climb.

• Immediate resistance is located at 1.6936(Daily high), any close above will push the pair towards 1.6990(38.2% fib).

• Immediate support is seen at 1.6856(5DMA) and break below could take the pair towards 1.6734(5DMA).

Recommendation: Good to buy on dips around 1.6880, with stop loss of 1.6730, and target price of 1.6950.

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