• EUR /AUD strengthened on Tuesday as Euro benefited from weaker Australian dollar, shrugging off lower than expected Eurozone inflation and growth data.
• Euro zone inflation dropped to its lowest level in over two years in October, prices grew by 2.9% year on year in October, the slowest pace since July 2021.
• The pair hit daily high at 1.6757 and was last trading at 1.6685 .
• 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 1.6742(23.6% fib), any close above will push the pair towards 1.6820( Oct 26th high).
• Immediate support is seen at 1.6675 (5DMA) and break below could take the pair towards 1.6628(38.2% fib).
Recommendation: Good to buy on dips around 1.6680 , with stop loss of 1.6600 and target price of 1.6760.
