FxWirePro: EUR/AUD rallies above 1.5500 but reversal is likely
• EUR/AUD recovered some ground on Friday as reduced risk appetite and lower copper prices weighed on Australian dollar.
• The pair is currently approaching resistance at 1.5589 ( 38.2%fib). Resistance at 1.5589 is likely to cap further upside in the pair.
• Technical signals are bearish as RSI is at 41, daily momentum studies 5, 9 and 10 DMAs are trending down.
• On the upside, Immediate resistance is located at 1.5589 ( 38.2%fib), any close above will push the pair towards 1.5642 (11DMA)
• On the downside, support is seen at 1.5459 (23.6%fib ) and break below could take the pair towards 1.5399 (Lower BB).
Recommendation: Good to sell around 1.5590, with stop loss of 1.5850 and target price of 1.5430.