• EUR/AUD rally extended towards 1.6700 on Monday as euro was boosted by upbeat Germany’s Ifo business sentiment index.
• German business business climate index rose to 90.5 in July from an upwardly revised 86.3 in June.
• EUR/AUD bulls confidence is running high, a test of the 1.6630 (38.2% fibo) highly seem s likely.
• From a technical viewpoint, RSI is strongly bullish at 60.00, daily momentum studies, 5, 10 and 21 daily MAs all climb.
• Immediate resistance is located at 1.6502 (Daily high), any close above will push the pair towards 1.6571 (200 DMA).
• Immediate support is seen at 1.6424 (23.6% fib) and break below could take the pair towards 1.6357 (5 DMA).
Recommendation: Good to buy on dips around 1.6450, with stop loss of 1.6350 and target price of 1.6550.
