FxWirePro: EUR/AUD rebounds, critical resistance lies ahead

•EUR/AUD rose on Tuesday as Australian dollar was weighed down by dovish RBA statement  and iron ore's plunge.

•The RBA's statement was not as  hawkish as the market expected. The RBA statement was optimistic about growth, but downplayed concerns about inflation. RBA said they were prepared to be patient on policy.

•China iron ore futures plunged 10% to one-year low of 566 yuan per tonne.

•EUR/AUD bulls   confidence is running high, a test of the 1.5633 (50%fib) highly seems likely.

•Technicals are bullish as RSI  is has turned sharply higher , daily momentum studies, 5, 9 and 11 daily  MAs are pointing higher.

•Immediate resistance is located at 1.5633 (50%fib), any close above will push the pair towards 1.5744(61.8%fib).

•Immediate support is seen at 1.5533 (38.2%fib) and break below could take the pair towards 1.5403 (23.6%fib).

Recommendation: Good to buy on dips around 1.5580, with stop loss of 1.5400 and target price of 1.5700.