• EUR/AUD strengthened on Tuesday as Australian dollar weakened against euro after RBA held base rate as expected
• Markets had fully expected the Reserve Bank of Australia (RBA) to hold rates at 4.1% for a third month at its September meeting.
• EUR/AUD reaches 1.6895 after extending north from 1.6700 (Daily low) , EUR/AUD bulls need to close above 38.2%fib in order to keep the bias on gains.
• Technicals highlight upside risks. The 5, 9 and 11 day moving averages lend support, daily RSI is bullish at 55.
• Immediate resistance is located at 1.6832 (38.2%fib), any close above will push the pair towards 1.6895(Daily high)
• Immediate support is seen at 1.6757 (5DMA ) and break below could take the pair towards 1.6688 (50%fib).
Recommendation: Good to buy around 1.6780, with stop loss of 1.6700 and target price of 1.6880
