• EUR/AUD strengthened on Tuesday as Australian dollar was weighed down by dovish speech from RBA's lowe.
• Reserve Bank of Australia (RBA) Governor Philip Lowe painted a very dovish policy outlook with no rate rises on the horizon until 2024.
• The pair is approaching resistance at 1.6140( 38.2%fib),a daily close abovewhich will accelerate towards 1.6200 level.
• Technical signals are bullish as RSI is at 55, daily momentum studies 5,9 and 10 DMAs are trending up.
• Immediate resistance is located at 1.6140( 38.2%fib), any close above will push the pair towards 1.6240 (23.6%fib)
• Strong support is seen at 1.6062 (50%fib ) and break below could take the pair towards 1.5985 (61.8%fib).
Recommendation: Good to buy around 1.6110, with stop loss of 1.6000 and target price of 1.6200.
