• EUR/AUD strengthened on Wednesday as softer than expected Australian inflation data weighed on Australian dollar.
• Data from the Australian Bureau of Statistics on Wednesday showed its monthly consumer price index (CPI) rose 6.8% in the year to February, the slowest rise since June of last year.
• The pair currently is approaching resistance at 23.6%fib . A break above would unmask 1.6300 level in the short term.
• From a technical viewpoint, RSI is strongly bullish at 67, daily momentum studies, 5, 10 and 11 daily MAs are pointing higher.
•Immediate resistance is located at 1.6270(23.6%fib), any close above will push the pair towards 1.6388 (Higher BB).
• Immediate support is seen at 1.6159 (38.2%fib) and break below could take the pair towards 1.6101 (11DMA).
Recommendation: Good to buy on dips around 1.6220, with stop loss of 1.6120 and target price of 1.6300
