- EUR/AUD is trading in a 'Symmetric Triangle' pattern and has shown a decisive breakout at 'Triangle Top'.
- Aussie dented on Australia January Retail Sales miss and lower commodities prices. RBA policy decision had little impact.
- The RBA kept rates unchanged as expected and the policy statement offered no hawkish or dovish surprise.
- Technical indicators on weekly charts support upside in the pair. RSI strength seen at 68 levels and momentum studies are bullish.
- Upside is currently capped below 78.6% Fib retrace of 1.6585 to 1.3626 fall at 1.5952.
- Break above will find next major resistance at 1.6247 (88.6% Fib) ahead of 1.6252 (2016 high).
- On the flipside, 20-DMA is strong support at 1.5727, break below will see further weakness.
Recommendation: Good to go long on dips around 1.5850/60, SL: 1.5730, TP: 1.59/ 1.5950/ 1.6075.
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