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FxWirePro: EUR/AUD set for increasing upside potential, 1.5950 beckons

• EUR/AUD gained on Thursday as euro was supported on the back recovering German retail sales  and upbeat euro zone manufacturing data.

• Euro zone manufacturing activity expanded at its fastest pace   in June, while  German retail sales rebounded in May as a gradual easing of COVID-19 restrictions supported consumer spending in Europe's largest economy

• Any downside correction is likely to be temporary as barrier at 1.5809 (38.2% fib)is likely to restrict lower move.

• From a technical viewpoint, RSI  is strongly bullish at 61, daily momentum studies, 5, 10 and 11 daily  MAs are pointing higher.

• Immediate resistance is located at 1.5879 (Higher BB), any close above will push the pair towards 1.5903 (23.6%fib).

• Immediate support is seen at 1.5809 (38.2% fib) and break below could take the pair towards 1.5765 (21DMA).

Recommendation: Good to buy on dips around 1.5860, with stop loss of 1.5800 and target price of 1.5950.
 

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