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FxWirePro: EUR/AUD uptrend gains momentum after weak Australia retail sales data, room for further gains

• EUR/AUD rose sharply  on Tuesday   as Australian dollar was deflated by disappointing Australian retail sales data.

• Data from the Australian Bureau of Statistics (ABS) on Tuesday showed retail sales fell 0.4% in March from February, when they rose by a revised 0.2%. Analysts had looked for a rise of 0.2%.

• EUR/AUD bulls   confidence is running high  , a test of the  23.6%fib  resistance is likely. 

• From a technical viewpoint, RSI  has turned bullish  , daily momentum studies, 5 and 9 daily  moving averages   are trending up.

• Immediate resistance is located at 1.6510(23.6%fib), any close above will push the pair towards 1.6565 (April 23rd high).

• Immediate support is seen at 1.6438(38.2%fib) and break below could take the pair towards 1.6380 (50%fib).

Recommendation: Good to buy on dips around 1.6430, with stop loss of 1.6350 and target price of 1.6530
 

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