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• EUR/AUD rose higher on Tuesday as Australian dollar slipped lower after the country’s central bank held rates steady for a second month.
• The Reserve Bank of Australia (RBA) wrapped up its August policy meeting by holding cash rates at 4.1%.
• A close above 23.6%fib resistance will likely trigger a new bullish phase with potential for 1.6700.
• Technical signals are turning bullish as RSI is turning higher at 58, daily momentum studies 5, 9 and 10 DMAs are trending up.
• Strong resistance is located at 1.6611(23.6%fib), any close above will push the pair towards 1.6737 ( April 27th high)
• Strong support is seen at 1.6465(38.2% fib) and break below could take the pair towards 1.6462 (5DMA).
Recommendation: Good to buy around 1.6590, with stop loss of 1.6400 and target price of 1.6670
