• EUR/AUD initially gained on Monday but lost ground as concerns that the slowing Chinese economy could be hit with COVID lockdowns weighed on euro
• The euro zone is seen more at risk than the U.S. and dependent on China for growth.
• Underlying trend for the pair remains bullish. A break and close above 1.5021 (38.2 %fib) might spur increased upside momentum.
• Technical signals are bullish as RSI is at 57, momentum studies, 5, 10 & 21 DMAs are trending up.
• Immediate resistance is located at 1.4951 ( Higher BB), any close above will push the pair towards 1.5021 (38.2 %fib)
• Strong support is seen at 1.4874 (50 %fib ) and break below could take the pair towards 1.4741 (61.8 %fib).
Recommendation: Good to buy on dips around 1.4900 with stop loss of 1.4800 and target price of 1.5050.
