• EUR/AUD strengthened on Thursday as euro was supported after the European Central Bank said it would trim emergency bond purchases over the coming quarter.
•The pair reaches 1.6072 after extending north from 1.5973 (Daily low). Bounce off from today’s , and long lower wick on daily chart are encouraging longs.
• Technical signals show the pair RSI is turning up, daily momentum studies 5 and 9 DMAs are trending up.
• Immediate resistance is located at 1.6052 (11DMA), any close above will push the pair towards 1.6080 (38.2% fib).
• Strong support is seen at 1.5960 (23.6% fib) and break below could take the pair towards 1.5881(23.6% fib )
Recommendation: Good to buy around 1.6050, with stop loss of 1.5900 and target price of 1.6120
