• EUR/AUD rebounded strongly on Thursday after ECB maintained unchanged rates and resisted the idea of implementing a more relaxed monetary policy in the upcoming year.
• The ECB kept deposit rate unchanged at a record-high 4%.The ECB's updated economic projections pointed to lower inflation and growth, particularly for next year.
• The pair currently is approaching resistance at 50%fib . A break above would unmask 1.6450 level in the short term.
• Immediate resistance is located at 1.6552 (5DMA), any close above will push the pair towards 1.6397 (50%fib).
• Immediate support is seen at 1.6313 (38.2%fib) and break below could take the pair towards 1.6204(23.6%fib).
Recommendation: Good to buy on dips around 1.6370, with stop loss of 1.6250 and target price of 1.6480
