• EUR/AUD strengthened on Tuesday as slightly dovish RBA statement and continued spread of delta variant of the coronavirus weighed on Australian dollar.
• Australia’s two biggest cities, Sydney and Melbourne, are also still under lockdown as the nation struggles to contain the domestic coronavirus situation, primarily in New South Wales and Victoria.
• EUR/AUD rally lifts the pair above 1.6200. A break and daily close above 1.6258 (Higher BB) will accelerate further gains.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 61 bullish, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.6258 (Higher BB), any close above will push the pair towards 1.6295 (23.6%fib).
• Strong support is seen at 1.6188 (38.2%fib) and break below could take the pair towards 1.6106 (50%fib )
Recommendation: Good to buy around 1.6200, with stop loss of 1.6120 and target price of 1.6280
