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FxWirePro: EUR/AUD rebounds, critical resistance lies ahead

• 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
 

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