• EUR/AUD initially dipped on Tuesday but recovered some ground as improved risk sentiment supported the pair.
• Equity gains & softer dollar helped EUR/AUD turn positive. A break and daily close above will accelerate further gains towards 1.6700 level.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 71 bullish, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.5633 (38.2%fib), any close above will push the pair towards 1.5735(23.6%fib).
• Strong support is seen at 1.5561(50%fib) and break below could take the pair towards 1.5524 (9DMA )
Recommendation: Good to buy around 1.5610 with stop loss of 1.5550 and target price of 1.5700
