• EUR/AUD strengthened on Tuesday as Australian dollar was weighed down by underperformance of Chinese stocks.
• Risk-sensitive Australian dollar also was negatively impacted by coking coal falling over 1.5%.
• A close above 138.2% fib resistance will likely trigger a new bullish phase with potential for 1.6400.
• From a technical viewpoint, RSI is strongly bullish at 52, daily momentum studies, 5, 9 and 11 are trending up.
• Immediate resistance is located at 1.6354 (38.2%fib), any close above will push the pair towards 1.6413(Higher BB).
• Immediate support is seen at 1.6287 (50% fib) and break below could take the pair towards 1.6225(61.8%fib).
Recommendation: Good to buy on dips around 1.6330, with stop loss of 1.6230, and target price of 1.6400
