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FxWirePro: EUR/AUD chart very bullish, looks on course for 1.5800

• 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
 

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