• EUR/AUD strengthened on Tuesday as Australian dollar attracted sellers after RBA softened hawkish outlook.
.
• Market responded to slight tweak to statement that is less hawkish, statement tweak suggested that RBA is data dependent and not yet pencilling in on April hike.
• The pair currently is approaching resistance at 23.6%fib. A break above would unmask 1.6100 level in the short term.
• From a technical viewpoint, RSI is strongly bullish at 71, daily momentum studies, 5, 10 and 11 daily MAs are pointing higher.
• Immediate resistance is located at 1.6045(23.6%fib), any close above will push the pair towards 1.6091 (Higher BB).
• Immediate support is seen at 1.5962 (38.2%fib) and break below could take the pair towards 1.5888(50%fib).
Recommendation: Good to buy on dips around 1.6020 with stop loss of 1.5900 and target price of 1.6100
