• EUR/AUD rose higher on Tuesday, as coronavirus related news weighed on commodity linked Australian dollar.
• The Reserve Bank of Australia has reiterated it stands ready to ease policy further in the face of the unprecedented spread of the coronavirus
• At GMT 18:39, the pair was trading 0.43% higher at 1.8335 , highest since 13th march.
• Technical lean bearish, RSI is turning sharply lower, momentum studies, 5, 10 DMAs falling southwards. While, 21 day Bollinger bands indicating an overbought market.
• On the upside, Immediate resistance is located at 1.6905 ( 5DMA), any close above will push the pair towards 1.7000 (Psychological level).
• On the downside, support is seen at 1.6710(9 DMA) and break below could take the pair towards 1.6622 (11 DMA).
Recommendation: Good to buy on dips around 1.8050, with stop loss of 1.7800 and target price of 1.8500.
