• EUR/AUD rally extended towards 1.6180 on Wednesday as Australian dollar was weighed down by lower oil prices and COVID-19 cases surge worldwide .
• Oil benchmarks have been under pressure for the last few weeks due to the rise in infections caused by the Delta variant of the coronavirus worldwide.
• EUR/AUD bulls confidence is running high, Break of 1.6202 (23.6%fb) resistance highly seems likely.
• From a technical viewpoint, RSI is strongly bullish at 65, daily momentum studies, 5, 10 and 21 daily MAs all climb.
• Immediate resistance is located at 1.6202 (23.6%fb), any close above will push the pair towards 1.6229 (Higher BB).
• Immediate support is seen at 1.6108 (5DMA)and break below could take the pair towards 1.6017 (38.2%fib).
Recommendation: Good to buy on dips around 1.6170, with stop loss of 1.6050 and target price of 1.6220
