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

• EUR/AUD strengthened  on Wednesday as  sliding stocks, lower oil  prices and  below estimate Australian wage growth data   dragged Australian dollar lower.

• Pair traded in   1.5510/1.5632  range and was last trading at 1.5575 in the US afternoon. 

• The is pair heading towards the 38.2%fib, as near term direction of the pair is likely to be driven by current price action.
 
• Technical signals are bullish as RSI is at 56, daily momentum studies  5,9 and 10 DMAs are trending up. 

•  Immediate resistance is located at 1.5636( 23.6%fib), any close above will push the pair towards 1.5663 (Higher BB).

• Strong  support is seen at 1.5510 (38.2%fib ) and break below could take the pair towards 1.5470 (11DMA).

Recommendation: Good to buy  around 1.5750, with stop loss of 1.5660 and target price of 1.5820