• EUR/AUD declined on Tuesday as hawkish RBA Minutes boosted Australian dollar across the board.
• Minutes of its Oct. 3rd meeting showed RBA considered hiking and are concerned inflation isn't easing fast enough. The Aus Q3 CPI next week will now be a key event for the RBA.
• EUR/AUD pair fell below psychological level 1.6600 but recovered some ground to trade last at 1.6612
• Technical signals are bullish as RSI is at 52, daily momentum studies 5, 9 and 14 DMAs are trending north.
• Immediate resistance is located at 1.6698(Daily high), any close above will push the pair towards 1.6741(23.6% fib).
• Strong support is seen at 1.6431(38.2% fib) and break below could take the pair towards 1.6325 (11DMA).
Recommendation: Good to buy on dips around 1.6600, with stop loss of 1.6500 and target price of 1.6670
