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

• EUR/AUD maintained its strength on Thursday  as investors sought clarity on the timing of potential rate cuts by ECB.

• Investors  also awaited Friday’s Germany HICP inflation data.Germany's Harmonized Index of Consumer Prices (HICP) inflation is expected to remain unchanged at 3.1%  

• The pair trades solidly at 1.6605 level  and has thus far avoided sliding below the critical 38.2% fib support line.

• From a technical viewpoint, RSI  is strongly bullish at 60, daily momentum studies, 5, 10 and 11 daily  MAs are pointing higher.

• Immediate resistance is located at 1.6607 (38.2%fib), any close above will push the pair towards 1.6665(Higher BB).

• Immediate support is seen at 1.6510 (50%fib) and break below could take the pair towards 1.6466(Feb 7th low).

Recommendation: Good to buy  around 1.6600 , with stop loss of 1.6520 and target price of 1.6680
 

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