• EUR/AUD rally extended towards 1.5200 on Tuesday as fears of slowing global economic growth and oil plunge forced investors to dump commodity related currencies.
• Oil prices dipped below $100 on Tuesday after losing around 6% the day before as coronavirus lockdowns in China, the top oil importer, fed worries about demand..
•The pair hit daily high at 1.5280 and was last trading at 1.5204 at (GMT 17:05).
•From a technical viewpoint, RSI is strongly bullish at 65 daily momentum studies, 5, 10 and 11 are trending up.
•Immediate resistance is located at 1.5272 (Higher BB), any close above will push the pair towards 1.5349 (23.6 % fib).
• Immediate support is seen at 1.5105(38.2% fib) and break below could take the pair towards 1.4944 (5 DMA).
Recommendation: Good to buy on dips around 1.5200, with stop loss of 1.5000 and target price of 1.5350.
