• EUR/AUD rose on Thursday as investors pulled up ECB hike expectations.
• ECB President Christine Lagarde fuelled expectations of faster policy tightening, as she focused on the prospect of euro zone inflation overshooting.
• EUR/AUD bulls confidence is running high, a rise towards 1.6150 is likely.
• From a technical viewpoint, RSI is strongly bullish at 63, daily momentum studies, 5, 10 and 11 daily MAs are pointing higher.
• Immediate resistance is located at 1.6043 (23.6%fib), any close above will push the pair towards 1.6158(6th Dec 2021).
• Immediate support is seen at 1.5969 (38.2%fib) and break below could take the pair towards 1.5910 (50%fib).
Recommendation: Good to buy on dips around 1.6000, with stop loss of 1.5900 and target price of 1.6100
