• EUR/AUD rose on Friday as dovish outlook from the RBA combined with weaker prices for copper and iron ore prices put pressure on the Australian dollar.
• Flows were light amid the holiday season, with a year-end liquidity drain contributing to thinner markets.
• Rally towards is 1.6860 possible if EUR/AUD bulls overcome resistance at 38.2%fib
• Immediate resistance is located at 1.6788(38.2%fib), any close above will push the pair towards 1.6843(Higher BB).
• Strong support is seen at 1.6690(50%fib) and break below could take the pair towards 1.6634 (Dec 26th low).
Recommendation: Good to buy around 1.6750 with stop loss of 1.6670 and target price of 1.6850
