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FxWirePro: EUR/AUD holds above 1.5800 but upside is limited

• EUR/AUD recovered some ground after intially falling on Monday as  investors became cautious on risks that the Omicron coronavirus variant could pose to the global economic outlook.

• EUR/AUD fell as low as 1.5758 before buyers returned and underpinned .EUR/AUD moving higher around 1.5802

•Support at 38.2% fib at 1.5789  is  holding,   but break would warn of correction.

• Technical signals  are mixed as 14-day momentum holding bullish but RSI struggling to confirm gains.

• Immediate resistance is located at 1.5893 ( 23.8%fib), any close above will push the pair towards 1.6058 (Oct 6th high)

• Support is seen at 1.5789 (38.2% fib ) and break below could take the pair towards 1.5708(50%fib).

Recommendation: Good to buy  around 1.5800, with stop loss of 1.5700 and target price of 1.5900.

 

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