• EUR/ AUD initially dipped on Thursday but recovered some ground as investors positioned for higher U.S. interest rates and remained concerned about the health of European economy.
• Manufacturing sector in Germany, Europe's largest economy and a major exporter contracted for a second month.
• EUR/ AUD initially dipped but found buyers at 1.4620. A break and daily close above 38.2% fib will accelerate further gains.
• Technical signals are bullish as RSI is at 54, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.4692 (38.2% fib), any close above will push the pair towards 1.4785 (23.6% fib).
• Strong support is seen at 1.4611 (50% fib) and break below could take the pair towards 1.4532(61.8% fib )
Recommendation: Good to buy around 1.4640, with stop loss of 1.4560 and target price of 1.4710
