• EUR/AUD returned to positive territory on Tuesday after German investor morale rose unexpectedly in November.
• The ZEW economic research institute said its economic sentiment index increased to 31.7 from 22.3 points in October.
• EUR/AUD bulls confidence is running high, a test of the 1.5841 (23.6%fib)highly seems likely.
• From a technical viewpoint, RSI is strongly bullish at 55, daily momentum studies, 5, 10 and 21 daily MAs all climb.
• Immediate resistance is located at 1.5747 (38.2%fib), any close above will push the pair towards 1.5841 (23.6%fib).
• Immediate support is seen at 1.5675 (50%fib) and break below could take the pair towards 1.5599 (61.8%fib).
Recommendation: Good to buy on dips around 1.5700, with stop loss of 1.5600 and target price of 1.5800.
