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• EUR/AUD rose higher on Tuesday after RBA held interest rates steady and left open the question of whether it would need to tighten further.
• As widely expected, the Reserve Bank of Australia (RBA) held its cash rate at a 12-year high of 4.35%, having hiked by a quarter point in November.
• At GMT 16:48, the pair was trading up 0.61 percent at 1.6465 after reaching daily high at 1.6510
• EUR/AUD bulls confidence is running high, a rise towards 1.6550 level is likely.
• Immediate resistance is located at 1.6510(61.8%fib), any close above will push the pair towards 1.6587(Nov 30th high).
• Immediate support is seen at 1.6437 (50% fib) and break below could take the pair towards 1.6367(38.2%fib).
Recommendation: Good to buy on dips around 1.6450, with stop loss of 1.6360 and target price of 1.6550
