FxWirePro: EUR/AUD holds above 1.5800 but upside is limited
• EUR/AUD recovered some ground after intially falling on Monday as investors became cautious on risks that the Omicron coronavirus variant could pose to the global economic outlook.
• EUR/AUD fell as low as 1.5758 before buyers returned and underpinned .EUR/AUD moving higher around 1.5802
•Support at 38.2% fib at 1.5789 is holding, but break would warn of correction.
• Technical signals are mixed as 14-day momentum holding bullish but RSI struggling to confirm gains.
• Immediate resistance is located at 1.5893 ( 23.8%fib), any close above will push the pair towards 1.6058 (Oct 6th high)
• Support is seen at 1.5789 (38.2% fib ) and break below could take the pair towards 1.5708(50%fib).
Recommendation: Good to buy around 1.5800, with stop loss of 1.5700 and target price of 1.5900.