• EUR/AUD strengthened on Thursday as euro benefited from strongly weaker Australian dollar.
• A daily close above 23.6% fib will further improve the technical outlook, and open the possibility of a rally towards 1.6550 level.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 67 bullish, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.6500(23.6% fib), any close above will push the pair towards 1.6577(Higher BB).
• Strong support is seen at 1.6422(Daily low) and break below could take the pair towards 1.6388 (5DMA )
Recommendation: Good to buy around 1.6470, with stop loss of 1.6350 and target price of 1.6560
