• EUR/AUD rally extended on Tuesday as soured risk sentiment, falling iron ore prices , lower oil prices weighed on Australian dollar.
• EUR/AUD is now on course to register a close above 1.5685 (38.2%fib)level, chart points to bigger gains towards 1.6700.
• From a technical viewpoint, RSI is strongly bullish at 68, daily momentum studies, 5, 10 and 21 daily MAs all climb.
• Immediate resistance is located at 1.6582 (38.2%fib), any close above will push the pair towards 1.6648 (Higher BB).
• Immediate support is seen at 1.6487 (Daily low) and break below could take the pair towards 1.6399 (50%fib).
Recommendation: Good to buy on dips around 1.6540, with stop loss of 1.6460 and target price of 1.6630
