• EUR/AUD strengthened on Thursday as lower commodity prices and continued lockdowns in major Australian States weighed on Antipodean currency.
• Australian economy has been undermined by the spread of the Delta variant, which triggered a lockdown in the capital of Canberra on Thursday.
• EUR/AUD gains near 38.2%fib,consolidation likely to continue while market seeks fresh factors.
• From a technical viewpoint, RSI is bullish at 52, daily momentum studies, 5, 10 and 11 daily MAs all climb.
• Immediate resistance is located at 1.6011 (21DMA), any close above will push the pair towards 1.6041 (38.2%fib).
• Immediate support is seen at 1.5902 (50% fib)and break below could take the pair towards 1.5870 (Lower BB).
Recommendation: Good to buy on dips around 1.5970, with stop loss of 1.5900 and target price of 1.6050.
