• EUR/AUD declined on Friday as investors focus turned to European Central Bank's next policy meeting.
• Attention turned to the ECB's policy meeting on January 25, with expectations that the central bank will maintain steady interest rates. However, market scrutiny will be on comments from ECB officials regarding the bank's rate outlook.
• Overnight volatility resulted in a brief dip, yet mild buying interest emerged around the 1.6485 level.
• Technical signals are bullish as RSI is at 59, daily momentum studies 5, 9 and 14 DMAs are trending north.
• Immediate resistance is located at 1.6206 (23.6%fib ), any close above will push the pair towards 1.6308(23rd May high).
• Strong support is seen at 1.6485 (50% fib) and break below could take the pair towards 1.6427 (Jan 16th high).
Recommendation: Good to buy around 1.6470, with stop loss of 1.6350 and target price of 1.6570
