• EUR/AUD initially dipped on Monday but recovered some ground as euro was buoyed by the ECB calls for rates to potentially rise above 2% if necessary to arrest runaway price growth.
• EUR/AUD fell as low as 1.4686 before buyers returned . A close above 38.2%fib resistance will shift momentum towards 1.4850 level.
• Technical signals are bearish as RSI is at 55, daily momentum studies 10,11 and 14 DMAs are trending up.
• Immediate resistance is located at 1.4740 ( 38.2%fib), any close above will push the pair towards 1.4852 (23.6%fib)
• Strong support is seen at 1.4657 (50% fib ) and break below could take the pair towards 1.4627 (14DMA).
Recommendation: Good to buy around 1.4710, with stop loss of 1.4600 and target price of 1.4800.
