• EUR/AUD initially gained towards 1.6330 on Tuesday but gave up some ground as investors looked ahead to the release of business activity data later this week for fresh clues on the ECB.
• Investors are awaiting Thursday's Euro zone Purchasing Managers' Index (PMI) which could provide further clues about the monetary cycle in the euro area.
• A close above 38.2%fib resistance will likely trigger a new bullish phase with potential for 1.6350.
• Immediate resistance is located at 1.6294 (38.2%fib), any close above will push the pair towards 1.6352(23.6%fib).
• Immediate support is seen at 1.6251 (50% fib) and break below could take the pair towards 1.6210(61.8%fib).
Recommendation: Good to buy on dips around 1.6280, with stop loss of 1.6200, and target price of 1.6360
