• EUR/AUD rally extended towards 1.5760 on Thursday as Australian dollar weakend as markets narrowed the odds on an early hike in U.S. interest rates.
• Risk-sensitive currencies like Aussie dollar weakened against euro as worries about faster policy tightening by the Federal Reserve dented market sentiment.
• EUR/AUD bulls confidence is running high, a test of the 1.5892 (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 1.5820 (38.2%fib), any close above will push the pair towards 1.5865 (Higher BB).
• Immediate support is seen at 1.5756 (50% fib) and break below could take the pair towards 1.5702 (61.8%fib).
Recommendation: Good to buy on dips around 1.5750, with stop loss of 1.5680 and target price of 1.5870.
