• EUR/AUD initially gained upto 1.6714 but gave up ground after data showed euro zone grew only marginally in the first three months of 2023.
• Gross domestic product in the euro zone expanded by 0.1% in the first quarter, below expectations for 0.2% growth.
• EUR/AUD setback will likely be limited by the key 1.6593 (38.2%fib). Fed, ECB meetings and global PMIs, US Apr jobs report are risks next week.
• From a technical viewpoint, RSI is strongly bullish at 40, daily momentum studies, 5, 10 and 11 daily MAs are pointing lower.
• Immediate resistance is located at 1.6720 (Daily high), any close above will push the pair towards 1.6827(23.6%fib).
• Immediate support is seen at 1.6593 (38.2%fib) and break below could take the pair towards 1.6482(9DMA).
Recommendation: Good to buy around 1.6640, with stop loss of 1.6590 and target price of 1.6730
