• EUR/AUD steadied around 1,6465 on Wednesday as Australian dollar slipped lower after a surprisingly soft reading on Australian inflation stoked bets for an earlier cut by RBA.
• Annual growth in consumer prices slowed to a two-year low of 4.1% in the fourth quarter, below forecasts of 4.3% and down sharply from 5.4% the previous quarter.
• A rally towards bigger resistance zone is possible if bulls overcome resistance at 38.2%fib .
• Technical signals are bullish as RSI is at 62, daily momentum studies 5,9 and 10 DMAs are trending up.
• Immediate resistance is located at 1.6503(38.2%fib), any close above will push the pair towards 1.6611 (23.6%fib).
• Strong support is seen at 1.6420(50%fib ) and break below could take the pair towards 1.6326( (61.8%fib).
Recommendation: Good to buy around 1.6460, with stop loss of 1.6350 and target price of 1.6560
