FxWirePro: EUR/AUD Extends Upside Into Daily Cloud, Focus on RBA Rate Decision
- EUR/AUD extends upside into daily cloud after breaking strong trendline resistance at 1.4835 on last Wednesday's trade.
- Markets now focus on RBA's policy meet tomorrow, disappointingly weak CPI data in Australia sees a very strong potential for a rate cut in May.
- But, Australia's business conditions and confidence remain around elevated levels and continue to suggest that the business environment is positive at present.
- Technicals on daily charts support upside in the pair, price action in the pair has entered daily cloud. We see weakness only on break below cloud base currently at 1.4941.
- Our previous call (http://www.econotimes.com/FxWirePro-EUR-AUD-capped-below-150-handle-upside-only-on-breaks-above-201426) has hit target price:1
Recommendation: Book partial profits, place stops at 1.4940, hold for 1.510/1.5160.