• EUR/AUD rally extended towards 1.7000 on Tuesday as concerns about rising COVID-19 cases hurt Australian dollar.
• Australian dollar has been overshadowed by rising COVID-19 cases, which is likey lead to further restrictions and derail the country’s economic recovery.
• EUR/AUD lifts above 38.2%fib and little pull back seen, sits nearby late in the day.
• Technically rising daily RSI, break of 5,11 & 21-DMA dents bearish technical signals. Bullish trending setup would only be undermined by a close below 1.6888 (50%fib)
• Immediate resistance is located at 1.7010(23.6% fib), any close above will push the pair towards 1.7055 (21st July high).
• Immediate support is seen at 1.6941 (38.2% fib) and break below could take the pair towards 1.6915(21 DMA).
Recommendation: Good to buy on dips around 1.6960, with stop loss of 1.6900 and target price of 1.7050.
