• EUR/AUD rebounded from 1.6760 level on Wednesday as Australian dollar slipped after data Australian inflation slowed more than forecast in July.
• Australian inflation slowed to a 17-month low in July, reinforcing the case for the Reserve Bank of Australia to hold rates steady at its policy meeting next week.
• At GMT 18:22, the pair was trading 0.47% higher at 1.6867, highest level since Aug 28th.
• From a technical viewpoint, RSI is strongly bullish at 57, daily momentum studies, 5, 10 and 21 daily MAs all climb.
• Immediate resistance is located at 1.6902 (38.2% fib), any close above will push the pair towards 1.7002(Higher BB).
• Immediate support is seen at 1.6757 (50% fib) and break below could take the pair towards 1.6715 (30DMA).
Recommendation: Good to buy on dips around 1.8650, with stop loss of 1.8540 and target price of 1.8730.
