FxWirePro: EUR/AUD trends higher, but faces potential pitfalls

• EUR/AUD strengthened on Friday after data showed Euro zone services growth picked up slightly in September.

• The euro zone’s services sector saw slightly faster growth in September, reaching an eight-month high, though overall expansion stayed modest as hiring stalled and demand showed only limited improvement, a survey revealed.

•  S&P Global reported that the HCOB Eurozone Services PMI Business Activity Index increased to 51.3 in September from 50.5 in August, marking a fourth straight month of expansion, as readings above 50.0 signal growth in activity.

•  The HCOB Eurozone Composite PMI, covering both services and manufacturing, inched up to 51.2 in September from 51.0 in August, its strongest reading since May 2024.

• The bloc’s recovery extended to most economies, with moderate expansion in Germany, Italy, and Spain, though France’s service providers remained hampered by political turbulence. 

• Immediate resistance is located at 1.7821 (50%fib), any close above will push the pair towards 1.7851 (Daily high)

• Strong support is seen at 1.7777(SMA 20) and break below could take the pair towards 1.7719(38.2%fib).

Recommendation: Good to buy around 1.7740, with stop loss of 1.7650 and target price of 1.7800