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FxWirePro: EUR/AUD rises on BoJ's policy and weaker Aus retail sales data, good to buy on dips

• EUR/AUD rose sharply on Friday as the pair was boosted after Bank of Japan  tweaked its ultra-loose monetary policy.

• Weaker than expected Australian  retail sales for June also adding added bullish momentum.

• The pair currently is approaching resistance at 23.6%fib . A break above would unmask 1.6650 level in the short term.

• From a technical viewpoint, RSI  is strongly bullish at 67, daily momentum studies, 5, 10 and 11 daily  MAs are pointing higher.

• Immediate resistance is located at 1.6584(23.6%fib), any close above will push the pair towards 1.6625 (Higher BB).

• Immediate support is seen at 1.6435 (38.2%fib) and break below could take the pair towards 1.6409 (21DMA).

Recommendation: Good to buy on dips around 1.6510, with stop loss of 1.6400 and target price of 1.6620
 

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