• EUR/AUD strengthened on Thursday as soft commodity prices amid global growth concerns weighed on Australian dollar.
• The Reserve Bank of Australia (RBA) Statement of Monetary Policy is awaited on Friday for more clues on rates
• A rally towards bigger resistance at 1.6845 is possible if EUR/AUD bulls overcome resistance at 38.2%fib.
• From a technical viewpoint, RSI is strongly bullish at 51, daily momentum studies, 5, 10 and 11 daily MAs are pointing higher.
• Immediate resistance is located at 1.6779(38.2%fib), any close above will push the pair towards 1.6845(Oct 24th high).
• Immediate support is seen at 1.6678(50%fib) and break below could take the pair towards 1.6623(50DMA).
Recommendation: Good to buy on dips around 1.6750, with stop loss of 1.6650 and target price of 1.6830
