• EUR/AUD rose above 1.8000 level as the Australian dollar softened amid cautious market sentiment ahead of the upcoming Fed minutes and the Jackson Hole symposium.
• Investors are closely watching the Federal Reserve’s upcoming minutes and the Jackson Hole symposium, where Fed Chair Jerome Powell is expected to provide guidance on interest rate policy and the economic outlook.
• A daily close above 38.2%fib will further improve the technical outlook, and open the possibility of a rally towards 1.8100 level.
• Technical signals are bullish as RSI is at 63, daily momentum studies 5,9,21 DMA are trending north.
• Immediate resistance is located at 1.8077(38.2%fib), any close above will push the pair towards 1.8100 (Higher BB).
• Strong support is seen at 1.7888(SMA20) and break below could take the pair towards 1.7000 (Psychological level).
Recommendation: Good to buy around 1.8020 with stop loss of 1.7930 and target price of 1.8100
