• EUR/AUD after initially gaining on Monday the pair gave up some ground as investors focus shifted to U.S. November CPI and the Fed meeting.
• November headline US inflation data is expected to be lower than October, which would reinforce views inflation is moderating.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 64 bullish, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.5670 (23.6%fib), any close above will push the pair towards 1.5750 (Higher BB).
• Strong support is seen at 1.5586(5DMA) and break below could take the pair towards 1.5480(38.2%fib ).
Recommendation: Good to buy around 1.5600 with stop loss of 1.5500 and target price of 1.5660
