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FxWirePro: EUR/AUD loses momentum but outlook is bullish

• EUR/AUD declined on Tuesday as  hawkish RBA Minutes boosted Australian dollar across the board.

• Minutes of its Oct. 3rd  meeting  showed RBA considered hiking and are concerned inflation isn't easing fast enough. The Aus Q3 CPI next week will now be a key event for the RBA.

• EUR/AUD    pair fell below  psychological level 1.6600  but recovered some ground to  trade last at 1.6612  

• Technical signals are bullish as RSI is at 52, daily momentum studies  5, 9 and 14 DMAs are trending north. 

• Immediate resistance is located at 1.6698(Daily high), any close above will push the pair towards 1.6741(23.6% fib).

• Strong support is seen at 1.6431(38.2% fib) and break below could take the pair towards 1.6325 (11DMA).

Recommendation: Good to buy on dips around 1.6600, with stop loss of 1.6500 and target price of 1.6670
 

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