FxWirePro- Currency Strength Index (4- Hour chart)- Currency pairs to watch(AUDUSD and CADJPY) for the day
FxWirePro: EUR/AUD consolidates above 1.5000 after early fall, maintains bullish bias
• EUR/AUD initially declined on Thursday on strong Australian jobs data but recovered ground as investors priced in the chance of an aggressive tightening path by the European Central Bank.
• Money markets are currently pricing in 106 basis points (bps) of ECB rate hikes from around 95 bps.
• Bullish momentum is likely to pick up with a move above 38.2% fib, which would take the pair towards 1.5200 level.
• Immediate resistance is located at 1.5076 (38.2%fib ), any close above will push the pair towards 1.5135(May 13th high).
•Immediate support is seen at 1.4989 (14DMA ) and break below could take the pair towards 1.4913 (50%fib).
Recommendation: Good to buy around 1.5000, with stop loss of 1.4850 and target price of 1.5100