FxWirePro- Currency Strength Index (4- Hour chart)- Currency pairs to watch (EURUSD and AUDUSD) for the day)
FxWirePro: EUR/AUD hits 3-month high, scope for further upside
• EUR/AUD rose on Friday as lower commodity prices weighed on Australian dollar.
• Commodity prices fell sharply, led by European natural gas as global central bank tightening threatened demand.
• EUR/AUD bulls confidence is running high, a break and close above 1.5342(23.6%fib) resistance is likely.
• From a technical viewpoint, RSI is strongly bullish at 75, daily momentum studies, 5, 10 and 11 daily MAs are pointing higher.
• Immediate resistance is located at 1.5342(23.6%fib), any close above will push the pair towards 1.5400(Psychological level).
• Immediate support is seen at 1.5244 (38.2%fib) and break below could take the pair towards 1.5167 (50%fib).
Recommendation: Good to buy on dips around 1.5270, with stop loss of 1.5200 and target price of 1.5400.