• EUR/AUD rally extended towards 1.6700 on Thursday after German inflation data came in higher than expected, strengthening euro.
• Germany’s annual consumer price inflation accelerated to 2.1% in April, exceeding market expectations and advancing further above the ECB’s target of close to but below 2%.
• EUR/AUD uptrend is poised to accelerate ,likely target for the current trend is 1.5660 (higher BB).
• From a technical viewpoint, RSI is bullish at 54, daily momentum studies, 5, 10 and 11 daily trending up.
• Immediate resistance is located at 1.5620 (38.2%fib), any close above will push the pair towards 1.5660 (Higher BB).
• Immediate support is seen at 1.5549 (50% fib) and break below could take the pair towards 1.5506(30 DMA).
Recommendation: Good to buy on dips around 1.5590, with stop loss of 1.5500 and target price of 1.5660.
