• EUR/AUD strengthened on Wednesday as investors digested the hike by Federal Reserve and the accompanying statement.
• U.S. Federal Reserve delivered a widely expected 25 basis point policy hike, while hinting that it was on the verge of pausing future hikes.
• EUR/AUD is now on course to register close above the 1.6246 (23.6% fib), break above will likely see a much bigger rise.
• Technical signals show the pair could lose more ground in the short-term as RSI is at 60 bullish, daily momentum studies 5, 10 and 21 DMAs are trending up.
• Immediate resistance is located at 1.6246 (23.6% fib),any close above will push the pair towards 1.6270(23.6 % fib ).
• Immediate support is seen at 1.6105(38.2% fib) and break below could take the pair towards 1.6029 (5DMA ).
Recommendation: Good to buy 1.6200, with stop loss of 1.6100and target price of 1.6300
