FxWirePro: EUR/AUD positions for another climb, eyes 1.5850 level
• EUR/AUD rally extended towards 1.6700 on Tuesday as dovish RBA minutes weighed on Australian dollar.
• The minutes from the last meeting of the Reserve Bank of Australia showed that even after the economy returned to pre-pandemic levels, the bank was still prepared to continue buying bonds.
• EUR/AUD bulls confidence is running high, a test of the 1.5847 (23.6%fib)seems likely.
• From a technical viewpoint, RSI is strongly bullish at 59, daily momentum studies, 5, 10 and 21 daily MAs all climb.
• Immediate resistance is located at 1.5814(Higher BB), any close above will push the pair towards 1.5847 (23.6%fib).
• Immediate support is seen at 1.5768 (38.2% fib) and break below could take the pair towards 1.5734(5DMA).
Recommendation: Good to buy on dips around 1.5770, with stop loss of 1.5700 and target price of 1.5850.