• EUR/AUD erased yesterday’s gains on Thursday as Australian dollar gained after labour force data showed a faster-than-expected decline in unemployment in April.
• Official figures showed the jobless rate had slipped to a one-year trough of 5.5% compared to economists’ forecast of 5.6%.
• The pair is expected to resume its uptrend, only a break and daily close below 50% fib at 1.5645 will shift bias to the downside.
• Immediate resistance is located at 1.5798 ( 23.6%fib), any close above will push the pair towards 1.5835( 3rd Feb high)
• Strong support is seen at 1.5712(38.2% fib) and break below could take the pair towards 1.5681 (5DMA).
Recommendation: Good to buy around 1.5680 with stop loss of 1.5600 and target price of 1.5800
