• 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.
