• EUR/AUD rally extended towards 1.5750 on Friday as Australian dollar was weighed down by as deteriorating China-Australia trade relations.
• The Aussie’s weakness came even as a survey of Australian retailers showed stronger-than-expected sales in April.
• EUR/AUD bulls confidence is running high, a test of the 1.5844 (23.6%fib) highly seem s likely.
• From a technical viewpoint, RSI is strongly bullish at 65, daily momentum studies, 5, 10 and 21 daily MAs all climb.
• Immediate resistance is located at 1.5799 (Higher BB), any close above will push the pair towards 1.5844 (23.6%fib).
• Immediate support is seen at 1.5728 (38.2%fb)and break below could take the pair towards 1.5649 (5DMA).
Recommendation: Good to buy on dips around 1.5730, with stop loss of 1.5650 and target price of 1.5800
