• EUR/AUD extended its yesterday’s bounce as speculation surrounding the ECB's policy outlook continued to provide support to euro.
• The euro has risen over the past few sessions by aggressive pricing of expected ECB rate hikes, as well as a softening of natural gas prices.
• Technical signals are bullish as RSI is at 53, daily momentum studies 5,11,and 4` DMA’s are trending up.
• Immediate resistance is located at 1.4865( Daily high), any close above will push the pair towards 1.4692(23.6%fib).
• Strong support is seen at 1.4581 (38.2%fib) and break below could take the pair towards 1.4537 (21DMA)."
Recommendation: Good to buy around 1.4610, with stop loss of 1.4500 and target price of 1.4730.
