FxWirePro: EUR/AUD propelled towards 1.5900 by record high Euro zone inflation data
• EUR/AUD gained on Tuesday as euro was supported on the back of better-than-expected Euro zone inflation data.
• Consumer price growth in the 19 countries sharing the euro accelerated to 4.9% in November, up from 4.1% a month earlier and well ahead of expectations for 4.5%.
• EUR/AUD bulls confidence is running high, gains towards 1.6000 highly seems likely.
• From a technical viewpoint, RSI is strongly bullish at 65.75, daily momentum studies, 5, 10 and 11 daily MAs are pointing higher.
• Immediate resistance is located at 1.5920 (Ichimoku Cloud Top), any close above will push the pair towards 1.5956 (38.2%fib).
• Immediate support is seen at 1.5886(50% fib) and break below could take the pair towards 1.5822 (5DMA).
Recommendation: Good to buy on dips around 1.5880, with stop loss of 1.5800 and target price of 1.5960.