• EUR/AUD strengthened on Tuesday as rise in COVID Delta-variant cases decreased demand for riskier currencies such as the Australian dollar.
• EUR/AUD climbs above 1.6050 and holds near the day's high in late US session. Close above 1.6199 (23.6% fib), sets up stage for run towards 1.6200.
• Technical signals are bullish as RSI is trending up, daily momentum studies 5, 9 and 10 DMAs are heading upwards.
• Immediate resistance is located at 1.6119 (23.6% fib), any close above will push the pair towards 1.6151 (20th Dec 2020 high).
• Support is seen at 1.6034 (38.2%fib ) and break below could take the pair towards 1.5970 (50% fib).
Recommendation: Good to buy around 1.6020, with stop loss of 1.5970 and target price of 1.6100.


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