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FxWirePro: EUR/AUD steadies around 1.6540, retains bid tone

• EUR/AUD strengthened on Thursday as continuous decline in iron ore prices exerted downward pressure on Australian dollar.

• Iron ore, the primary commodity traded on the Dalian Commodity Exchange, witnessed a decline of 8.9%.

• The retreat in iron ore is proving a drag on Australian government revenue and will shrink its budget surplus in the current fiscal year. 

• From a technical viewpoint, RSI  is strongly bullish at 52, daily momentum studies, 5, 10 and 11 DMA’s are trending up.

• Immediate resistance is located at 1.6567(Daily high), any close above will push the pair towards 1.6611(23.6% fib).

• Strong support is seen at 1.6504(38.2% fib) and break below could take the pair towards 1.6411 (50% fib).

Recommendation: Good to buy  around 1.6530, with stop loss of 1.6400 and target price of 1.6620

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