• EUR/AUD eased slightly on Tuesday as investors favored riskier currencies like Australian dollar amid reduced geopolitical fears.
•With risk appetite recovering, traders favored the AUD, contributing to a mild pullback in the EUR/AUD pair.
•Attention now turns to Australia’s May CPI data, which could further influence expectations around Reserve Bank of Australia policy and add direction to the pair.
• Technical signals are bullish as RSI is at 62, daily momentum studies 5,9 and 10 DMAs are trending up.
• Immediate resistance is located at 1.7965( 38.2%fib), any close above will push the pair towards 1.8000(Psychological level)
• Strong support is seen at 1.7810 (50% fib ) and break below could take the pair towards 1.7690 (20 SMA).
Recommendation: Good to buy around 1.7850, with stop loss of 1.7750 and target price of 1.7960
