• EUR/AUD initially dipped on Friday but recovered ground as falling commodity prices and China's economic troubles pressured the Aussie dollar.
• Copper eased was on track for a third consecutive weekly decline on concerns that a return of physical buying could be short-lived in top consumer China as the economy remains sluggish.
• WTI fell 2.02% on declining Chinese demand and hopes of a Gaza ceasefire agreement that could ease Middle East tensions and accompanying supply concerns..
• Technicals highlight upside risks. The 10- and 21-day moving averages lend support, daily RSI is rising at 86.
• Immediate resistance is located at 1.6614 (23.6%fib), any close above will push the pair towards 1.6645(Jul 25th high).
• Immediate support is seen at 1.6508 (38.2%fib) and break below could take the pair towards 1.6421 (50%fib).
Recommendation: Good to buy on dips around 1.6570, with stop loss of 1.6500 and target price of 1.6650
