• EUR/AUD strengthened on Tuesday as the pair rebounded from one month low after RBA held interest rates steady for a fourth month and showed no urgency to hike again.
•The Reserve Bank of Australia (RBA) held rates at 4.10%, and said recent data were consistent with inflation returning to its 2-3% target.
• A rally towards bigger resistance at 1.6732 is possible if EUR/AUD bulls overcome resistance at 38.2%fib.
• From a technical viewpoint, RSI is strongly bullish at 51, daily momentum studies, 5, 10 and 11 daily MAs are pointing higher.
• Immediate resistance is located at 1.6641 (38.2%fib), any close above will push the pair towards 1.6732 (23.6%fib).
• Immediate support is seen at 1.6543(50%fib) and break below could take the pair towards 1.6518(11DMA).
Recommendation: Good to buy on dips around 1.6580, with stop loss of 1.6500 and target price of 1.6680
