• EUR/AUD rally extended towards 1.5600 on Wednesday as upbeat Euro zone PMI data boosted euro across the board.
• Euro zone business activity returned to growth last month, underpinned by a record expansion in the manufacturing sector.
• EUR/AUD bulls confidence is running high, a test of the 1.5675 (50%fib) highly seems likely.
• From a technical viewpoint, RSI is strongly bullish at 58, daily momentum studies, 5, 10 and 11 daily MAs all climb.
• Immediate resistance is located at 1.5609 (Higher BB), any close above will push the pair towards 1.5675 (50%fib).
• Immediate support is seen at 1.5556 (38.2% fib) and break below could take the pair towards 1.5530(Ichimoku cloud base).
Recommendation: Good to buy on dips around 1.5600, with stop loss of 1.5500 and target price of 1.5675.
