• 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.
