FxWirePro:EUR/AUD runs out of steam but maintains bullish outlook
• EUR/AUD declined on Monday as Australian dollar strengthened ahead of RBA policy meeting.
• Reserve Bank of Australia is widely expected to backtrack on a previous decision to taper stimulus, with protracted COVID-19 lockdowns dragging on growth.
• At GMT 19:54, the pair was trading down 0.21 percent at 1.6120.
• Technical signals are bullish as RSI is at 65, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.6176 ( 23.6%fib), any close above will push the pair towards 1.6236 (Higher BB)
• Strong support is seen at 1.6094 (38.2 %fib ) and break below could take the pair towards 1.6042 (11DMA).
Recommendation: Good to buy around 1.6110, with stop loss of 1.6050 and target price of 1.6200.