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FxWirePro: EUR/AUD set for increasing upside potential, good to buy on dips

• EUR/AUD rally extended towards 1.5600 on Wednesday as upbeat  Euro zone PMI data boosted euro across the board.

• Euro zone business activity returned to growth last month, underpinned by a record expansion in the manufacturing sector.

• EUR/AUD bulls   confidence is running high, a test of the  1.5675 (50%fib) highly seems likely.

• From a technical viewpoint, RSI  is strongly bullish at 58, daily momentum studies, 5, 10 and 11 daily  MAs all climb.

• Immediate resistance is located at 1.5609 (Higher BB), any close above will push the pair towards 1.5675 (50%fib).

• Immediate support is seen at 1.5556 (38.2% fib) and break below could take the pair towards 1.5530(Ichimoku cloud base).

Recommendation: Good to buy on dips around 1.5600, with stop loss of 1.5500 and target price of 1.5675.

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