• EUR/AUD initially gained on Thursday but retraced some of its early gains as investors digested release of the US CPI data.
• Data showed headline US CPI rose 0.3% last month, for an annual gain of 3.4%. That was expected to be 0.2% and 3.2%, respectively.
• A close above 38.2%fib resistance will likely trigger a new bullish phase with potential for 1.6500.
• From a technical viewpoint, RSI is strongly bullish at 56, daily momentum studies, 5 and 9 11 DMA’s are trending up.
• Immediate resistance is located at 1.6445 (38.2%fib), any close above will push the pair towards 1.6510(Dec 5th high).
• Immediate support is seen at 1.6366 (50% fib) and break below could take the pair towards 1.6279 (61.8% fib).
Recommendation: Good to buy on dips around 1.6390, with stop loss of 1.6300 and target price of 1.6460
