FxWirePro: EUR/AUD bulls gear up for next leg higher, eyes 1.7900 level

• EUR/AUD edged higher on Friday as traders digested U.S. PCE inflation data that came broadly in line with expectations.

• U.S. consumer spending, which accounts for more than two-thirds of economic activity, rose 0.6% in August, slightly higher than the 0.5% estimated by economists polled by Reuters.

• The Personal Consumption Expenditures Price Index, which is the Fed's preferred inflation measure, rose 0.3% last month, in line with expectations, U.S. Commerce Department data showed.

• In Australia, the local dollar remained under pressure after earlier losses triggered by strong U.S. economic figures, with traders watching upcoming domestic data for fresh policy clues.

• Immediate resistance is located at 1.7988(50%fib), any close above will push the pair towards 1.8000(Psychological level).

• Immediate support is seen at 1.7798(SMA 20) and break below could take the pair towards 1.7746(61.8% fib).

Recommendation: Good to buy on dips around 1.7860, with stop loss of 1.7790 and target price of 1.7920