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FxWirePro:EUR/AUD chart points recovery in coming sessions, good to buy on dips

• EUR/AUD gained sharply on Tuesday as Australian dollar was dragged lower by falling New Zealand dollar and lower oil prices.

• Oil prices dipped more  1%  on Tuesday on concerns that new pandemic curbs and slow vaccine rollouts in Europe will dampen a recovery in fuel demand.

• New Zealand dollar was rocked on Tuesday after New Zealand   introduced a raft of measures to cool its housing market.

•  EUR/AUD bulls   confidence is running high, a test of the 38.2%fib highly seem s likely.

• From a technical viewpoint, RSI  is bullish at 51, daily momentum studies, 5, 10 and 11 daily  MAs are pointing higher.

• Immediate resistance is located at 1.5546 (38.2%fib), any close above will push the pair towards 1.5593 (Higher BB).

• Immediate support is seen at 1.5336 (23.6% fib) and break below could take the pair towards 1.5266 (Lower BB).

Recommendation: Good to buy on dips around 1.5450, with stop loss of 1.5330 and target price of 1.6510.
 

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