• EUR/AUD rally extended towards 1.6700 on Friday as euro was boosted after data showed Euro zone economic sentiment improved by more than expected in May.
• Economic sentiment in Eurozone improved by more than expected to a three-year high in May, with the strongest gains in services, retail and among consumers as governments eased pandemic restrictions..
•EUR/AUD bulls confidence is running high, a test of the 1.5916 (23.6%fib) highly seems likely.
•From a technical viewpoint, RSI is strongly bullish at 66, daily momentum studies, 5, 10 and 21 daily MAs all climb.
• Immediate resistance is located at 1.5854(Higher BB), any close above will push the pair towards 1.5916 (23.6%fib).
• Immediate support is seen at 1.5806 (38.2% fib) and break below could take the pair towards 1.5768 (5 DMA).
Recommendation: Good to buy on dips around 1.5800, with stop loss of 1.5700 and target price of 1.5880.
