• EUR/AUD rose sharply on Friday as the pair was boosted after Bank of Japan tweaked its ultra-loose monetary policy.
• Weaker than expected Australian retail sales for June also adding added bullish momentum.
• The pair currently is approaching resistance at 23.6%fib . A break above would unmask 1.6650 level in the short term.
• From a technical viewpoint, RSI is strongly bullish at 67, daily momentum studies, 5, 10 and 11 daily MAs are pointing higher.
• Immediate resistance is located at 1.6584(23.6%fib), any close above will push the pair towards 1.6625 (Higher BB).
• Immediate support is seen at 1.6435 (38.2%fib) and break below could take the pair towards 1.6409 (21DMA).
Recommendation: Good to buy on dips around 1.6510, with stop loss of 1.6400 and target price of 1.6620
