• EUR/AUD recovered most of the ground from early fall on Friday as U.S. yields slump and weaker Australian dollar supported euro.
• The U.S. 10-year Treasury yield broke below key levels despite hotter-than-expected consumer inflation data on Thursday.
• Pair traded in 1.5662/1.5731 range and was last trading at 1.5718 into the US afternoon.
• Technical signals are bushish as RSI is at 52, daily momentum studies 5,9 and 10 DMAs are trending up.
• Immediate resistance is located at 1.5735 ( 23.6%fib), any close above will push the pair towards 1.5774 (June 9th high)
• Strong support is seen at 1.5660 (38.2% fib ) and break below could take the pair towards 1.5631 (Lower BB).
Recommendation: Good to buy around 1.5700, with stop loss of 1.5630 and target price of 1.5760.