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FxWirePro: EUR/AUD jumps as payrolls surprise fuels upside

• EUR/AUD  advanced on Friday after stronger-than-expected U.S. jobs data in May boosted the pair and supported expectations of future Fed tightening.

• The U.S. labor report showed much stronger job creation than forecast, reinforcing bets that the Federal Reserve could resume rate hikes later this year.

• On the geopolitical front, Peace talks between the U.S. and Iran are at a stalemate, and a reignition of hostilities this week has kept oil above $90 a barrel, raising risks to global growth

• Markets now  focused on an expected ECB rate hike next week, with a 25 bps hike almost fully priced in and two to three hikes expected over the year.

 •  Immediate resistance is located at 1.6375(SMA 20), any close above will push the pair towards 1.6405(38.2%fib)

• Support is seen at 1.6247( SMA 20) and break below could take the pair towards 1.6142(Lower BB).

Recommendation: Good to buy around 1.6330, with stop loss of 1.6260 and target price of 1.6390
 

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