FxWirePro: AUD/USD on track to test trendline support at 0.6855, upbeat Aussie PMI data fails to impress
FxWirePro: EUR/AUD uptrend stalled, progress needed soon to sustain
• EUR/AUD initially gained on hawkish ECB but gave up some ground following soft Euro zone PMI data that showed business growth slowed in May.
•S&P Global's flash Composite Purchasing Managers' Index (PMI), seen as a good guide to overall economic health, fell to 54.9 in May from 55.8 in April, lower than the 55.3 expected.
• Pair traded in 1.5197/1.5028 range and was last trading at 1.5104 into the US afternoon.
• Technical signals are bullish as RSI is at 59, daily momentum studies 5,9 and 10 DMAs are trending up.
• Immediate resistance is located at 1.5197 ( 23.6%fib), any close above will push the pair towards 1.5263 (Higher BB).
• Strong support is seen at 1.5030 (5DMA ) and break below could take the pair towards 1.4991 (38.2%fib).
Recommendation: Good to buy around 1.5090, with stop loss of 1.4900 and target price of 1.5150.