• EUR/AUD initially dipped Wednesday recovered some ground as investors digested Eurozone inflation data
• In an up-and-down session, the pair hit low at 1.6537 in early trading then gained towards 1.6650.
• A daily close above 23.6%fib will further improve the technical outlook, and open the possibility of a rally towards 1.6950 level.
• Technicals highlight upside risks. The 14- and 21-day moving averages lend support, daily RSI is bullish at 54.
• Immediate resistance is located at 1.6622 (23.6%fib), any close above will push the pair towards 1.6654 (Mar 19th high)
• Support is seen at 1.6565 (38.2% fib ) and break below could take the pair towards 1.6521 (50% fib).
Recommendation: Good to buy around 1.6550, with stop loss of 1.6340 and target price of 1.6650
