• EUR/AUD rally extended towards 1.5700 on Tuesday as upbeat risk sentiment drove investors into growth-related assets like the euro.
• EUR/AUD made strong gains , but bulls need further moves higher.A break and daily close above 1.5706 (23.6%fib) would be a very bullish sign.
• From a technical viewpoint, RSI is strongly bullish at 61, daily momentum studies, 5, 10 and 21 daily MAs all climb.
• Immediate resistance is located at 1.5706 (23.6%fib), any close above will push the pair towards 1.5660 (5th Feb high).
• Immediate support is seen at 1.5631 (5DMA) and break below could take the pair towards 1.5616 (38.2%fib).
Recommendation: Good to buy on dips around 1.5660, with stop loss of 1.5550 and target price of 1.5750.
