• EUR/AUD strengthened on Thursday after European Central Bank officials tried to cool market speculation on bigger interest rate cuts.
• HCOB's preliminary composite euro zone Purchasing Managers' Index, compiled by S&P Global, nudged up to 49.7 in October from September's 49.6.
• Business activity in Germany, Europe's largest economy, shrank in October but less steeply than in September, according to its PMI.
• Rally towards is 1.6450 possible if EUR/AUD bulls overcome resistance at 23.6%fib.
• Immediate resistance is located at 1.6327(23.6%fib), any close above will push the pair towards 1.6326(Higher BB).
• Strong support is seen at 1.6250 (38.2%fib) and break below could take the pair towards 1.6211 (50%fib).
Recommendation: Good to buy around 1.6350 with stop loss of 1.6280 and target price of 1.6450
