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FxWirePro: EUR/AUD rallies to 1-week high, good to buy on dips

• EUR/AUD gained on Wednesday as Australian dollar weakened as risk appetite took a beating.

• Aussie was also sabotaged   by news China's Dalian Commodity Exchange was proposing to decrease the standard iron substance requirement  in  its flagship future.

• The pair, already trading higher on the day, extended its gains to hit high at 1.5630 after release of US CPI data.

• Technical signals show the pair could gain more ground in the short-term as RSI is at 57 bullish, daily momentum studies 9, 10 and 11 DMAs are trending up.

• Immediate resistance is located at 1.5630 ( Higher BB), any close above will push the pair towards 1.5681 (23.6%fib).

• Strong  support is seen at 1.5600 (38.2%fib) and break below could take the pair towards 1.5530 (50%fib).

Recommendation: Good to buy on dips around 1.5570, with stop loss of 1.5500 and target price of 1.5670.
 

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