• EUR/AUD rallied on Tuesday after less hawkish than expected RBA minutes weighed on Australian dollar.
• Minutes revealed the decision to hike in June was finely balanced,RBA noted slowing consumer spending and risks previous hike could lead to a sharper slowdown.
• EUR/AUD made strong gains , but bulls need further moves higher.A break and daily close above 23.6%fib would be a very bullish sign.
• From a technical viewpoint, RSI is strongly bullish at 51, daily momentum studies, 5, 10 and 11 daily MAs all climb.
• Immediate resistance is located at 1.6143(Daily high), any close above will push the pair towards 1.6161 (23.6%fib).
• Immediate support is seen at 1.6026 (38.2%fib) and break below could take the pair towards 1.5910(50%fib).
Recommendation: Good to buy on dips around 1.6090, with stop loss of 1.5900 and target price of 1.6200
