- EUR/AUD retraced dip below 50-DMA in last week's trade and has since held above.
- Technical indicators are slightly bullish. RSI and stochs are biased higher and 5-DMA has turned.
- The pair has broken above daily cloud and cloud top at 1.4881 is now immediate support.
- The pair has broken above 5-DMA and is on track to test major trendline resistance at 1.50.
- Violation at trendline could see further upside. Test of 1.5111 (May 26 high) and then 1.5226 (June 1st high) then likely.
- On the flipside, we see weakness only on decisive break below 50-DMA at 1.4819. Scope then for test of 1.46 (trendline).
Support levels - 1.4866 (5-DMA), 1.4819 (50-DMA), 1.4732 (Aug 17 low)
Resistance levels - 1.49, 1.4965 (Aug 4 high), 1.50 (trendline), 1.5020 (Aug 14 high)
Recommendation: Good to go long on close above 5-DMA, SL: 1.4820, target 1.50/ 1.5020.
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