• EUR/AUD strengthened on Thursday as weaker Australian dollar and upbeat euro zone business activity boosted the pair.
• HCOB's preliminary composite Purchasing Managers' Index, compiled by S&P Global, rose to 51.2 this month, up from 50.2 in July, moving further away from the 50 mark that separates growth from contraction.
• Rally towards is 1.6650 possible if EUR/AUD bulls overcome resistance at 38.2%fib.
• Immediate resistance is located at 1.6584(38.2%fib), any close above will push the pair towards 1.6671(23.6%fib).
• Strong support is seen at 1.6470 (50%fib) and break below could take the pair towards 1.6370 (61.8%fib).
Recommendation: Good to buy around 1.6590 with stop loss of 1.6500 and target price of 1.6680
