• EUR/AUD steadied around 1.6514 on Wednesday as euro gained despite mixed Euro zone business activity data.
• HCOB's first euro zone Composite PMI, calculated by S&P Global, increased to 47.9 this month from 47.6 in December, barely shy of forecasts of 48.0.
• Germany and France, the 20-country currency union's largest economies, both witnessed an uptick in their manufacturing PMIs but a decline in their services PMIs.
• From a technical viewpoint, RSI is strongly bullish at 57, daily momentum studies, 5, 10 and 21 daily MAs all climb.
• Immediate resistance is located at 1.6537(38.2%fib), any close above will push the pair towards 1.6600 (Psychological level).
• Immediate support is seen at 1.6468(50% fib) and break below could take the pair towards 1.6393(61.8%fib).
Recommendation: Good to buy on dips around 1.6500, with stop loss of 1.6410 and target price of 1.6600.
