FxWirePro- Currency Strength Index (4- Hour chart)- Currency pairs to watch (USCAD and EURJPY) for the day)
FxWirePro: EUR/AUD rebounds, critical resistance lies ahead
• EUR/AUD rebounded after initially falling on Monday as lower commodities and soured risk sentiment weighed on Australian dollar .
• Risk-sensitive currencies like Aussie dollar weakened against euro as fall in equities , commodities fell on prospect of slower growth worries.
• EUR/AUD bulls confidence is running high, a test of the 1.5000 highly seems likely.
• From a technical viewpoint, RSI is strongly bullish at 61, daily momentum studies, 5, 10 and 21 daily MAs all climb.
• Immediate resistance is located at 1.4925(23.6%fib), any close above will push the pair towards 1.5089(Higher BB).
• Immediate support is seen at 1.4868 (9DMA) and break below could take the pair towards 1.4833 (38.2%fib).
Recommendation: Good to buy on dips around 1.4900, with stop loss of 1.4810 and target price of 1.4980.