• EUR/AUD steadied on Wednesday as markets remain focused on data and policymakers for signs of slowing inflation and monetary policy trajectory.
•Money markets are still pricing in a 97% chance of a 25 basis point hike interest rates by European Central Bank next week.
• Pair traded in 1.6475/1.6580 range and was last trading at 1.6543 into the US afternoon.
• Technical signals are bullish as RSI is at 62, daily momentum studies 10,11 and 14 DMAs are trending up.
• On the upside, Immediate resistance is located at 1.6575 ( 23.6%fib), any close above will push the pair towards 1.6617(Higher BB)
• Support is seen at 1.6444(38.2% fib ) and break below could take the pair towards 1.6398 (21DMA).
Recommendation: Good to buy around 1.6530, with stop loss of 1.6440 and target price of 1.6600.
