• EUR/AUD strengthened on Wednesday as Australian dollar weakened as investor risk appetite grew increasingly cautious.
• Australian dollar has been surprisingly resilient in the face of collapsing iron ore prices , rising China growth and systemic concerns and a relatively dovish Reserve Bank of Australia .
• EUR/AUD bulls confidence is running high, a test of the 1.6207 (38.2%fib) cannot be ruled out in the near term.
• From a technical viewpoint, RSI is bullish at 55, daily momentum studies, 5, 10 and 21 daily MAs all climb.
• Immediate resistance is located at 1.6207 (38.2%fib), any close above will push the pair towards 1.6260 (Higher BB).
• Immediate support is seen at 1.6134 (5DMA) and break below could take the pair towards 1.6107 (50%fib).
Recommendation: Good to buy on dips around 1.6150, with stop loss of 1.6060 and target price of 1.6200.
