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EUR/AUD losses momentum, but outlook is bullish

• EUR/AUD retreated from daily high on Tuesday as riskier currencies like asustralian dollar gained after Powell testimony. • EUR/AUD traded as high as 1.5817 before falling below 1.5800 level. • Currently, the 1.5730 (5…

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EUR/AUD losses momentum, but outlook is bullish
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• EUR/AUD retreated from daily high on Tuesday as riskier currencies  like asustralian dollar gained  after Powell testimony.

• EUR/AUD traded as high as 1.5817 before falling  below 1.5800 level.

• Currently, the 1.5730 (50% fib)barrier is restricting lower move, will likely be  a speed bump to bears.

• Technical signals are bullish as RSI is at 52, daily momentum studies  5, 9 and 14 DMAs are trending north. 

• Immediate resistance is located at 1.5791 (38.2%fib ), any close above will push the pair towards 1.5825(Jan 11th HIgh).

• Strong support is seen at 1.5759 (5DMA) and break below could take the pair towards 1.5730 (50% fib).

Recommendation: Good to buy on dips around 1.5760, with stop loss of 1.5700 and target price of 1.5800.
 

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