• EUR/AUD rose sharply on Thursday as risk aversion, Sino-U.S tension and weak yuan undermined Australian dollar.
• The pair is currently approaching resistance at 23.6%fib resistance. A break and daily close above will accelerate further gains towards 1.6525 level.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 59 bullish, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.6455 (23.6%fib), any close above will push the pair towards 1.6533(Higher BB).
• Strong support is seen at 1.6377 (5DMA) and break below could take the pair towards 1.6340 (38.2%fib).
Recommendation: Good to buy around 1.6400 with stop loss of 1.6280 and target price of 1.6470
