• EUR/AUD strengthened on Friday as euro gained traction amid short-covering ahead of the holidays, driven by improving risk sentiment.
• The euro weakened earlier on Friday after U.S. President-elect Donald Trump called on the European Union to purchase more U.S. oil and gas in an effort to reduce the trade deficit..
• Trump warned that failure to do so could result in tariffs, adding pressure on the euro and fueling concerns over potential trade tensions between the EU and the U.S.
• From a technical viewpoint, the moving averages are pointing upwards, while the RSI is strongly bullish at 58
• Immediate resistance is located at 1.6689(23.6% fib), any close above will push the pair towards 1.6782(Higher BB).
• Immediate support is seen at 1.6611(Daily low) and break below could take the pair towards 1.6548(38.2%fib).
Recommendation: Good to buy around 1.6670, with stop loss of 1.6600 and target price of 1.6750
