FxWirePro: EUR/AUD set for increasing upside potential, 1.6200 beckons

• EUR/AUD gained on Thursday as weaker than expected Australian employment data weighed on antipodean currency.

• Data from the Australian Bureau of Statistics (ABS) on Thursday showed employment fell 146,000 in August, compared median forecasts for a decline of 90,000.The unemployment rate dipped to 4.5%

• EUR/AUD bulls   confidence is running high, a test of the 1.6278(23.6%fib) highly seems likely.

• From a technical viewpoint, RSI  is strongly bullish at 55, daily momentum studies, 5, 10 and 11 daily  MAs are pointing higher.

• Immediate resistance is located at 1.6171 (38.2% fib), any close above will push the pair towards 1.6278 (23.6%fib).

• Immediate support is seen at 1.6085(50% fib) and break below could take the pair towards 1.6050 (50DMA).

Recommendation: Good to buy on dips around 1.6120, with stop loss of 1.6000 and target price of 1.6200.