• EUR/AUD rose higher on Friday as weaker Australian dollar and above-forecast euro zone inflation data boosted the pair.
• Inflation in the 19-country currency bloc rose to 7.5% in April from 7.4% in March, in line with expectations
• EUR/AUD bulls confidence is running high, a rise towards 1.5100 level is likely.
• From a technical viewpoint, RSI is strongly bullish at 56, daily momentum studies, 5, 10 and 21 daily MAs all climb.
• Immediate resistance is located at 1.4976(38.2%fib), any close above will push the pair towards 1.5115 (23.6% fib).
• Immediate support is seen at 1.4837 (50% fib) and break below could take the pair towards 1.4706 (61.8%fib).
Recommendation: Good to buy on dips around 1.4900, with stop loss of 1.4800 and target price of 1.5100.
