• EUR/AUD rally extended towards 1.5590 on Friday as the European Central Bank's optimism on the economic outlook boosted euro.
• There were few surprises from the ECB at Thursday's meeting and the hawks remained quiet . But the central bank predicted a strong economic rebound in 2021,.
• EUR/AUD bulls confidence is running high, a test of the 1.5654 (Higher BB) highly seems likely.
• From a technical viewpoint, RSI is strongly bullish at 56, daily momentum studies, 5, 10 and 21 daily MAs all climb.
• Immediate resistance is located at 1.5620 (38.2%fib), any close above will push the pair towards 1.5660 (Higher BB).
• Immediate support is seen at 1.5549 (50% fib) and break below could take the pair towards 1.5503 (21 DMA).
Recommendation: Good to buy on dips around 1.5590, with stop loss of 1.5500 and target price of 1.5650.
