FxWirePro- Currency Strength Index (4- Hour chart)- Currency pairs to watch(AUDUSD and CADJPY) for the day
FxWirePro:EUR/AUD longs hold higher ground as ECB eyes rate hikes
• EUR/AUD strengthened on Monday as increasingly hawkish ECB and upbeat German Ifo data boosted euro .
• German business morale rose unexpectedly in May thanks to a pick up in the services sector in Europe's largest economy that helped offset the impact of high inflation.
• EUR/AUD bulls have tightened their grip on this market, A break, daily close above 38.2%fib will accelerate towards 1.5200.
• Technical signals are bearish as RSI is at 57, daily momentum studies 5, 9 and 10 DMAs are trending up.
•Immediate resistance is located at 1.5091 ( 38.2%fib), any close above will push the pair towards 1.5188(11 May high)
• Support is seen at 1.5030(9 DMA ) and break below could take the pair towards 1.4959 (21DMA.
Recommendation: Good to buy around 1.5040, with stop loss of 1.4900, and target price of 1.5110