• EUR/AUD rally extended on Thursday as expectation that ECB will raise interest rate next week boosted euro.
• All eyes will be on the European Central Bank next week, ECB is likely to hike its key lending rate by 50 basis points.
• EUR/AUD is now on course to register a close above 23.6%fib residence, chart points to bigger gains towards 1.6150 level.
• From a technical viewpoint, RSI is strongly bullish at 60, daily momentum studies, 5, 10 and 21 daily MAs all climb.
• Immediate resistance is located at 1.6066(23.6%fib), any close above will push the pair towards 1.6124 (Higher BB).
• Immediate support is seen at 1.5932 (38.2% fib) and break below could take the pair towards 1.5844(9DMA).
Recommendation: Good to buy on dips around 1.6050, with stop loss of 1.5900 and target price of 1.6120
