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EUR/AUD: Critical 1.46 / 38.3 fib breakout, 200-DMA within reach

FXStreet (Bali) - EUR/AUD is for the first time since early June this year exchanging hands above a critical horizontal resistance-turned-support at 1.4550/1.46, assisted by the pick up in risk sentiment on Thursday.

In a EUR/AUD article from earlier this week - Bullish dynamics to allow 1.46 breakout?- it was argued that bulls were in control, using the 20-day EMA as a key technical reference to buy the dips, adding pressure to the critical resistance mentioned (also aligning perfectly with the 38.2% fib retrac 2014 fall). Besides, other key MAs on the daily - 20,50,100 - have also kept the technical landscape constructive.

The next upside target for buyers post Thursday's breakout should be a retest of the 200-day EMA at 1.4725/30 - we came fairly close with a high of 1.4702 - ahead of 1.4830 (50% fib retrac from this year's decline). On the downside, any setback should be well guarded by the 20-day EMA, coming at the 1.45 round number today, ahead of 1.44 (confluence 50,100-day EMAS).

Session Recap: Along came Bullard; Dollar mixed

Panic mode earlier in the day as stocks tested yesterday's lows with oil pricing below 80.00 briefly. However Fed's Bullard commented that the Fed should consider delay in ending QE and then, stock rebounded as well as Oil. US dollar experienced a roller coaster versus major rivals.
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USD/JPY is trading at 106.32, down -0.01% on the day, having posted a daily high at 106.37 and low at 106.31.
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