• EUR/AUD initially gained on Friday but gave up ground as concerns about the China’s economy kept investors cautious.
• China's economy was the was on investors' minds as a series of economic data and ructions in the property sector have laid bare the stumbling post-pandemic recovery.
• In an up-and-down session, the pair hit high at 1.7010 in early trading then retreated towards 1.6961.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 660 bullish, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.7005 (23.6%fib), any close above will push the pair towards 1.7069 (Aug 17th high).
• Strong support is seen at 1.6908(5DMA) and break below could take the pair towards 1.6832 (38.2%fib )
Recommendation: Good to buy around 1.6940 with stop loss of 1.6820 and target price of 1.7050
