• EUR/AUD initially gained but retreated slightly on Friday as traders assessed the progress of U.S. debt ceiling negotiations.
• In an up-and-down session, the pair hit high at 1.6523 in early trading then retreated towards 1.6445.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 55 bullish, daily momentum studies 5, 10 and 21 DMAs are trending up.
• Immediate resistance is located at 1.6517 (Daily high), any close above will push the pair towards 1.6593 (23.6% fib).
• Strong support is seen at 1.6395 (38.2% fib) and break below could take the pair towards 1.6376 (5DMA )
Recommendation: Good to buy around 1.6440, with stop loss of 1.6350 and target price of 1.6500
