• EUR/AUD initially dipped but recovered ground as investors absorbed the European Central Bank's interest rate cut decision
• The European Central Bank cut interest rates as expected on Thursday and confirmed that euro zone inflation is becoming more controlled, despite global trade concerns, causing the euro to dip slightly.
• The U.S. central bank kept rates unchanged on Wednesday, as expected, with Fed Chair Jerome Powell stating there was no urgency to cut rates further.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 58 bullish, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.6773 (Higher BB), any close above will push the pair towards 1.6825 (23.6% fib).
• Strong support is seen at 1.6673(38.2% fib) and break below could take the pair towards 1.6538(50% fib )
Recommendation: Good to buy around 1.6700 with stop loss of 1.6600 and target price of 1.6800
