• EUR/AUD gained sharply on Tuesday as Australian dollar was dragged lower by falling New Zealand dollar and lower oil prices.
• Oil prices dipped more 1% on Tuesday on concerns that new pandemic curbs and slow vaccine rollouts in Europe will dampen a recovery in fuel demand.
• New Zealand dollar was rocked on Tuesday after New Zealand introduced a raft of measures to cool its housing market.
• EUR/AUD bulls confidence is running high, a test of the 38.2%fib highly seem s likely.
• From a technical viewpoint, RSI is bullish at 51, daily momentum studies, 5, 10 and 11 daily MAs are pointing higher.
• Immediate resistance is located at 1.5546 (38.2%fib), any close above will push the pair towards 1.5593 (Higher BB).
• Immediate support is seen at 1.5336 (23.6% fib) and break below could take the pair towards 1.5266 (Lower BB).
Recommendation: Good to buy on dips around 1.5450, with stop loss of 1.5330 and target price of 1.6510.
