FxWirePro: EUR/AUD hits 3-month high, scope for further upside
• EUR/AUD rose on Tuesday as Australian dollar lost ground after the Reserve Bank of Australia delivered a smaller-than-expected rate hike.
• Reserve Bank of Australia raised its official cash rate by 25 basis points to 2.6%, defying expectations for a bigger 50-basis-point rise.
• EUR/AUD bulls confidence is running high, a break and close above (23.6%fib) resistance is likely.
• From a technical viewpoint, RSI is strongly bullish at 70, daily momentum studies, 5, 10 and 11 daily MAs are pointing higher.
• Immediate resistance is located at 1.5428(23.6%fib), any close above will push the pair towards 1.5500(Psychological level).
• Immediate support is seen at 1.5244 (38.2%fib) and break below could take the pair towards 1.5168 (5DMA).
Recommendation: Good to buy on dips around 1.5380, with stop loss of 1.5270 and target price of 1.5480.
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