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FxWirePro: EUR/AUD gains on China data, good to buy on dips

• EUR/AUD strengthened on Monday   as Australian dollar weakened after data showed the Chinese economy is grew more slowly than anticipated.

• China reported growth of 0.8% in the second quarter, above the 0.5% forecast, while the annual pace slowed more than expected to 6.3%, well below expectations.

• EUR/AUD approaching resistance at 23.6%fib . A break above would unmask 1.6550 level in the short term.

• From a technical viewpoint, RSI  is strongly bullish at 58, daily momentum studies, 5, 10 and 21 daily  MAs all climb.

• Immediate resistance is located at 1.6536 (23.6%fib), any close above will push the pair towards 1.6575 (Higher BB).

• Immediate support is seen at 1.6404 (5DMA) and break below could take the pair towards 1.6360 (38.2%fib).

Recommendation: Good to buy on dips around 1.6460, with stop loss of 1.6340 and target price of 1.6560.
 

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