FxWirePro: EUR/AUD consolidates break above 61.8% Fib, eyes 78.6% Fib at 1.60

Refer EUR/AUD chart on Trading View

• EUR/AUD consolidates break above 61.8% Fib, bias higher.
   
• Aussie bulls find support following news of Australian Treasurer Scott Morrison's victory to become the new Australian Prime Minister. Australian financial markets view Morrison as the best outcome.
   
• The relief rally could be short-lived as ongoing US-China trade spat keeps pressure on. The latest US tariffs to collect 25% duties on China’s imports kicked-in on Thursday.
   
• Technical indicators are bullish. Stochs and RSI are biased higher. We see bullish +DMI crossover on -ve DMI which supports upside in the pair.
   
• The pair has broken above strong trendline resistance at 1.5880, we see scope for test at 1.60. On the flipside, break below 100-DMA negates bullish bias.

Support levels - 1.5787 (5-DMA), 1.5733 (100-DMA), 1.5730 (21-EMA)

Resistance levels - 1.5946 (session high), 1.5995 (78.6% Fib)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-AUD-breaks-above-618-Fib-bias-higher-stay-long-1419314) has hit TP1.

Recommendation: Bias higher. Hold for further upside.

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 139.955 (Bullish), while Hourly AUD Spot Index was at -112.335 (Bearish) at 0645 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.