• EUR/AUD maintained its strength on Thursday as investors sought clarity on the timing of potential rate cuts by ECB.
• Investors also awaited Friday’s Germany HICP inflation data.Germany's Harmonized Index of Consumer Prices (HICP) inflation is expected to remain unchanged at 3.1%
• The pair trades solidly at 1.6605 level and has thus far avoided sliding below the critical 38.2% fib support line.
• From a technical viewpoint, RSI is strongly bullish at 60, daily momentum studies, 5, 10 and 11 daily MAs are pointing higher.
• Immediate resistance is located at 1.6607 (38.2%fib), any close above will push the pair towards 1.6665(Higher BB).
• Immediate support is seen at 1.6510 (50%fib) and break below could take the pair towards 1.6466(Feb 7th low).
Recommendation: Good to buy around 1.6600 , with stop loss of 1.6520 and target price of 1.6680
