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FxWirePro:EUR/AUD bulls need to hold above key tech level to advance

• EUR/AUD initially gained on Friday but gave up  some ground as investors  feared about the prospects for a global recession  while they also prepared for U.S.  rate hike from the Fed.

• Focus is squarely on next week’s Fed meeting, with futures indicating a 75bp hike fully priced in with chances of a 100bp move a touch lower at 20%, down from near 30% after Tuesday’s CPI data.

• Technical signals are bullish as RSI is at 62, daily momentum studies  5, 9 and 10 DMAs are trending north. 

• Immediate resistance is located at 1.4957(23.6% fib), any close above will push the pair towards 1.5024(Higher BB)

• Strong support is seen at 1.4851 (38.2%fib) and break below could take the pair towards 1.4816 (5DMA).

Recommendation: Good to buy around 1.4950, with stop loss of 1.4870 and target price of 1.5050.
 

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