• EUR/AUD rally extended on Thursday as soured risk sentiment, falling iron-ore prices weighed on Australian dollar.
• EUR/AUD hit daily high at 1.6393 ,consolidation likely to continue while market seeks fresh factors.
• From a technical viewpoint, RSI is strongly bullish at 66, daily momentum studies, 5, 10 and 21 daily MAs all climb.
• Immediate resistance is located at 1.6385 (Daily high), any close above will push the pair towards 1.6450 (23.6% fib).
• Immediate support is seen at 1.6215 (5DMA) and break below could take the pair towards 1.6163 (38.2% fib).
Recommendation: Good to buy on dips around 1.6360, with stop loss of 1.6200 and target price of 1.6450
