• EUR/AUD rally extended towards 1.4800 on Tuesday as markets turned their attention to increasingly hawkish ECB rhetoric.
• EUR/AUD rallied towards 1.4800, buoyed by the ECB calls for rates to potentially rise above 2% if necessary to arrest runaway price growth.
• EUR/AUD bulls confidence is running high, a test of the 1.4888 (23.6% fibo) highly seems likely.
• From a technical viewpoint, RSI is strongly bullish at 54, daily momentum studies, 5, 10 and 21 daily MAs all climb.
• Immediate resistance is located at 1.4888 (23.6%fib), any close above will push the pair towards 1.4931 (Higher BB).
• Immediate support is seen at 1.4790(38.2% fib) and break below could take the pair towards 1.47582 (5DMA).
Recommendation: Good to buy on dips around 1.4790, with stop loss of 1.4650 and target price of 1.4910.
