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FxWirePro: EUR/AUD extends gains, Faces 38.2%fib resistance

• EUR/AUD rose higher on Friday as   slump in price of iron ore and lower oil prices weighed on Australian dollar.

• Dalian iron ore extended losses to a sixth session on Friday,  as Chinese steel mills opted to reduce output amid weak profits and deteriorating demand prospects.

• The pair is currently approaching resistance at ( 38.2%fib). Break above will  likely push the pair towards 1.5250  level.

• Technical signals as RSI is higher at 58, daily momentum studies  5, 9 and 10 DMAs are trending up.

•   Immediate resistance is located at 1.5163 ( 38.2%fib), any close above will push the pair towards 1.5234 ( Higher BB)

•  Strong support is seen at 1.4955 (50%fib ) and break below could take the pair towards 1.4901 (50DMA).

  Recommendation: Good to buy around 1.5110, with stop loss of 1.5000 and target price of 1.5180.

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