• EUR/AUD rally extended towards 1.6500 on Thursday as euro was supported by Fed statement reiterating its pledge to use all its tools to help the economy recover from COVID-19 impacts.
• The Fed highlighted the risks posed by the pandemic to the economic outlook and said the health crisis will weigh heavily on employment, economic activity and inflation .
• Technical signals highlight upside bullish trend as daily RSI is at 60, daily momentum studies, 5, 10 and 11 daily and climb. Bullish trending setup would only be undermined by a close below 1.1627 10 DMA
• Immediate resistance is located at 1.6543(Daily high), any close above will push the pair towards 1.6633 (38.2 % fib).
• Immediate support is seen at 1.6426 (23.6% fib) and break below could take the pair towards 1.6342 (11 DMA).
Recommendation: Good to buy on dips around 1.6500, with stop loss of 1.6360 and target price of 1.6600.
