• EUR/AUD rose on Tuesday as Australian dollar weakened after RBA held its cash rate on hold.
• In a statement, the bank signalled the cash rate would stay ultra low until least 2024 and upgraded its growth forecast for the Australian economy from 3.5% to 4.75% over 2021.
• EUR/AUD bulls confidence is running high, a test of the 1.5691 (38.2%fib) highly seem s likely.
• From a technical viewpoint, RSI is strongly bullish at 56, daily momentum studies, 5, 10 and 11 daily MAs are pointing higher.
• Immediate resistance is located at 1.5660 (Higher BB), any close above will push the pair towards 1.5691 (38.2%fib).
• Immediate support is seen at 1.5564 (9DMA) and break below could take the pair towards 1.5531 (23.6%fib).
Recommendation: Good to buy on dips around 1.5610, with stop loss of 1.5530 and target price of 1.5690.
