• EUR/AUD strengthened on Friday as Australian dollar extended weakness against euro after another upside surprise on U.S. inflation dimmed the prospects of early rate cuts by RBA.
• At GMT 17:53, the pair was trading up 0.40 percent at 1.6598 ,highest level since March 7th.
• Australian dollar is likely to remain pressured ahead of RBA and Fed decisions next week.
• From a technical viewpoint, RSI is strongly bullish at 55, daily momentum studies, 5, 10 and 11 DMA’s are trending up.
• Immediate resistance is located at 1.6629(23.6% fib), any close above will push the pair towards 1.6723(Higher BB).
• Strong support is seen at 1.6517(38.2% fib) and break below could take the pair towards 1.6411 (50% fib).
Recommendation: Good to buy around 1.6590, with stop loss of 1.6400 and target price of 1.6650
