• EUR/AUD steadied around 1.6520 on Wednesday as euro gained against Australian dollar despite weak German industrial output data.
• German industrial production fell more than expected in December, the federal statistics office said on Wednesday.
• Industrial production fell in December by 1.6% compared with the previous month. Analysts polled by Reuters had predicted a 0.4% fall.
• 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 1.6550(38.2%fib), any close above will push the pair towards 1.6621 (Higher BB).
• Immediate support is seen at 1.6468(50% fib) and break below could take the pair towards 1.6382(61.8%fib).
Recommendation: Good to buy on dips around 1.6510, with stop loss of 1.6410 and target price of 1.6600.
