FxWirePro: EUR/AUD trends higher, but faces potential pitfalls

• EUR/AUD recovered some ground on Thursday as short position reduction ahead of Powell's Jackson Hole speech. 

•Europe's outlooks remain mixed due to several factors  the Delta variant, vaccination rollout and the impact of the COVID-19 pandemic on the economic recovery.

• EUR/AUD failed to break support at 1.6162 (50%fib).EUR/AUD moving higher in late the US session.

• Technically, EUR/USD momentum studies are positive,RSI is rising at 58. 

• Immediate resistance is located at 1.6271( 38.2%fib), any close above will push the pair towards 1.6377 (Higher BB).

• Support is seen at 1.6197 (11DMA ) and break below could take the pair towards 1.6162 (50%fib).

Recommendation: Good to buy  around 1.6220, with stop loss of 1.6150 and target price of 1.6280.