• EUR/AUD rally extended towards 1.6600 on Tuesday as investors digested US CPI and ZEW economic sentiment survey data.
• Data showed that the US Consumer Price Index (CPI) rose 0.3% on a monthly basis in January, above the 0.2% increase expected by economists
• Germany's economic mood increased to 19.2 from 15.2 in January, but the current circumstances rating was much worse than expected, at -81.7 from -77.3 in January.
• Technical signals show RSI is at 58 bullish , daily momentum studies 9, 10 and 11 DMAs are trending upwards.
• Immediate resistance is located at 1.6613 (23.6% fib), any close above will push the pair towards 1.6661 (Higher BB).
• Immediate support is seen at 1.6515 (38.2% fib) and break below could take the pair towards 1.6437(50%fib ).
Recommendation: Good to buy on dips around 1.6590, with stop loss of 1.6450 and target price of 1.6670
