• EUR/AUD strengthened on Tuesday as weaker Australian dollar and ebbing fears of market contagion from indebted China Evergrande Group supported the pair.
• The pair currently is approaching resistence at 1.6209 ( 38.2%fib). A break above 1.6209 would unmask 1.6300 level in the short term.
• Technical signals are bullish as RSI is at 44.31, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.6209 ( 38.2%fib), any close above will push the pair towards 1.6256 (23.6%fib)
• Strong support is seen at 1.6115 (50% fib ) and break below could take the pair towards 1.6015 (61.8%fib)
Recommendation: Good to buy around 1.6120, with stop loss of 1.6050 and target price of 1.6250
