FxWirePro: Good to buy EUR/AUD dips around 1.5650 levels, weakness only below 1.5500

EUR/AUD has seen a good bounce off strong trendline support currently at 1.54 levels.

• Price action is well above the daily cloud and 200-DMA (1.5105), and MACD indicates further momentum higher.
   
• The pair has strong support at 1.56 levels (5-DMA) and we see major weakness only on breaks below 1.5500 (10-DMA).
   
• Widening Ichi cloud and positive momentum could see the pair test resistance at 1.60.
   
• There is slight weakness evidenced on the day, which could give good buying opportunity, bullish invalidation on breaks below 1.5500 (10-DMA).
   
• German industrial production and Euro zone Sentix investor confidence data are lined up for release, could have some influence on the pair.

 

Recommendation: Good to buy dips around 1.5650, SL: 1.5500, TP: 1.5790/1.5830/1.5945/1.60
Resistance Levels:

R1: 1.5789 (Feb 5th high)

R2: 1.5823 (Jan 14 high)

R3: 1.5943 (Jan 19 high)

Support Levels:

S1: 1.5605 (5-DMA)

S2: 1.5530 (Feb 5 lows)

S3: 1.5507 (10-DMA)