Forex: EUR/AUD advances thru strong resistance above 1.24

FXstreet.com (Barcelona) - EURAUD has recently broken above the 1.2410/25 ask line was limiting the upside since a week ago, coincident with the 38.2% Fibo retrace of the down leg 1.2833/1.2150 coming from early Oct. Increasing odds for a RBA rate cut next week, coupled with soft Capex index data yesterday have pushed Aussie lower, despite the relative improvement in risk appetite, while EURUSD has remained mostly flat, thus making EURAUD move higher.

"Technically for the EURAUD the break is clear and trend followers will likely be running with this one to see how far it goes," says Greg McKenna, Chief Investment and Market Strategist at GlobalFX, and former Currency Strategy at Westpac and the NAB. The cross is last quoted at 1.2441, off fresh Nov highs at 1.2457, a +0.29% higher for the week, bouncing from Wednesday's weekly low at 1.2334.

Immediate resistance to the upside for EURAUD shows at recent Thursday's high 1.2457, followed by Oct 11 lows and 50% retrace of same mentioned down leg at 1.25 round, and Oct 19 lows and 61.8% of same down move at 1.2574. To the downside, nearest term support lies at Nov 16 highs 1.2399, followed by Nov 02 lows at 1.2358, and Wednesday's lows at 1.2334.