• EUR/AUD strengthened on Friday as weaker global growth and COVID-19 lockdowns in China weighed on commodity linked Australian dollar.
• The is pair heading towards the 50%fib, as near term direction of the pair is likely to be driven by current price action.
• Technical signals are bullish as RSI is at 56, daily momentum studies 5,9 and 10 DMAs are trending up.
• Immediate resistance is located at 1.5049 ( 50%fib), any close above will push the pair towards 1.5116 (Ichimoku Cloud Top)
• Strong support is seen at 1.4830 (38.2%fib) and break below could take the pair towards 1.4587 (5DMA).
Recommendation: Good to buy around 1.4900, with stop loss of 1.4800 and target price of 1.4980.
