• EUR/AUD initially gained on Tuesday but gave up some ground as investors awaited European Central Bank's monetary policy meeting later in the week.
• The ECB meets on Thursday to discuss policy, it is anticipated that interest rates will remain at a record 4%. Investors will be watching for any clues as to when interest rates may begin to fall.
• On the data front ,survey data on showed that business activity in the euro zone showed signs of recovery last month.
• From a technical viewpoint, RSI is strongly bullish at 60, daily momentum studies, 5, 10 and 21 daily MA’s are trending up.
• Immediate resistance is located at 1.6694 (Feb 28th high), any close above will push the pair towards 1.6745 (23.6%fib).
• Immediate support is seen at 1.6660 (Daily low) and break below could take the pair towards 1.6637 (38.2%fib).
Recommendation: Good to buy on dips around 1.6670, with stop loss of 1.6560 and target price of 1.6730.
