• EUR/AUD strengthened on Friday as weakness in China’s yuan and lower commodities prices weighed on Australian dollar.
• Gold traded lower over the past two sessions after it recently struck an all-time high while iron-ore remains sharply lower on a year-to-date basis.
China's yuan declined to a four-month low on expectations of monetary easing, breaching a key threshold and prompting state-owned banks to step in to defend the currency.
• From a technical viewpoint, RSI is strongly bullish at 52, daily momentum studies, 5, 10 and 11 DMA’s are trending up.
• mmediate resistance is located at 1.6625(23.6% fib), any close above will push the pair towards 1.6700(23.6% fib).
Strong support is seen at 1.6517(38.2% fib) and break below could take the pair towards 1.6475 (Lower BB).
Recommendation: Good to buy around 1.6580, with stop loss of 1.6500 and target price of 1.6660
