• EUR/AUD retreated on Thursday as investors digested comments by a leading European Central Bank hawk.
• ECB rate-setter Isabel Schnabel said euro zone growth was weaker than predicted, but that does not necessarily void the need for more rate hikes.
• A rally towards 1.6900 level is possible if EUR/AUD bulls overcome resistance at 1.6785 (5DMA ).
• Technical signals are bullish as RSI is at 51, daily momentum studies 11,14 and 30 DMAs are trending north.
• Immediate resistance is located at 1.6785 (5DMA ), any close above will push the pair towards 1.6868(38.2%fib).
• Strong support is seen at 1.6709 (50% fib) and break below could take the pair towards 1.6639 (Lower BB).
Recommendation: Good to buy on dips around 1.6710, with stop loss of 1.6600 and target price of 1.6850
