• EUR/AUD rally extended above 1.6500 on Thursday as profit taking on shorts and signs of a global economic recovery from the coronavirus pandemic supported euro.
• Oversold conditions have eased after recent consolidation. Barrier at 1.6278 (5 DMA) is likely to restrict lower move.
• Technical signals highlight upside bullish trend as daily RSI is rising, a monthly bull hammer is forming for June and EUR/AUD is trading above the 5-DMA.
• Immediate resistance is located at 1.6625 (23.6% fib), any close above will push the pair towards 1.6700 (Psychological level).
• Immediate support is seen at 1.6427 (300 DMA) and break below could take the pair towards 1.6278 (5 DMA).
Recommendation: Good to buy on dips around 1.6500, with stop loss of 1.6270 and target price of 1.6600.
