• EUR/AUD rose sharply on Tuesday as Australian dollar was deflated by disappointing Australian retail sales data.
• Data from the Australian Bureau of Statistics (ABS) on Tuesday showed retail sales fell 0.4% in March from February, when they rose by a revised 0.2%. Analysts had looked for a rise of 0.2%.
• EUR/AUD bulls confidence is running high , a test of the 23.6%fib resistance is likely.
• From a technical viewpoint, RSI has turned bullish , daily momentum studies, 5 and 9 daily moving averages are trending up.
• Immediate resistance is located at 1.6510(23.6%fib), any close above will push the pair towards 1.6565 (April 23rd high).
• Immediate support is seen at 1.6438(38.2%fib) and break below could take the pair towards 1.6380 (50%fib).
Recommendation: Good to buy on dips around 1.6430, with stop loss of 1.6350 and target price of 1.6530
