FxWirePro:EUR/AUD rises to 1-1/2 month high, scope for further upside
• EUR/AUD rose on Friday as new COVID-19 variant sparked risk-aversion.
• Despite upbeat Australian retail sales data, Australian dollar failed to recover. Australian retail sales jumpied 4.9% in October, almost double market forecasts, as lockdowns began to be lifted.
• Bulls are now eyeing 23.6%fib resistance and a break would open the way towards 1.6000.
• Technical signals are strongly bullish as RSI is strongly bullish at 67, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.5914 ( 23.6%fib), any close above will push the pair towards 1.6000 (Psychological level)
• Support is seen at 1.5806 (38.2%fib ) and break below could take the pair towards 1.5719(50%fib).
Recommendation: Good to buy around 1.5900, with stop loss of 1.5800 and target price of 1.6000.