• EUR/AUD gained on Thursday as euro was supported on the back recovering German retail sales and upbeat euro zone manufacturing data.
• Euro zone manufacturing activity expanded at its fastest pace in June, while German retail sales rebounded in May as a gradual easing of COVID-19 restrictions supported consumer spending in Europe's largest economy
• Any downside correction is likely to be temporary as barrier at 1.5809 (38.2% fib)is likely to restrict lower move.
• From a technical viewpoint, RSI is strongly bullish at 61, daily momentum studies, 5, 10 and 11 daily MAs are pointing higher.
• Immediate resistance is located at 1.5879 (Higher BB), any close above will push the pair towards 1.5903 (23.6%fib).
• Immediate support is seen at 1.5809 (38.2% fib) and break below could take the pair towards 1.5765 (21DMA).
Recommendation: Good to buy on dips around 1.5860, with stop loss of 1.5800 and target price of 1.5950.
