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Fxwirepro: EUR/AUD rises from 1.6580 level , bulls take aim at 38.2% fib resistance

• EUR/AUD rally extended towards 1.6700 on Wednesday as Australian dollar continued its downward march  following the RBA’s 25 basis point rate hike.

• Despite hawkish elements, the RBA presented a more dovish outlook, shifting from a tightening bias to a stance that is more reliant on incoming data.

• The pair currently is approaching support at 38.2% fib. A break above 1.7470  leevel would unmask 1.6750  level in the short term.

• Technical signals show   RSI is bullish at 55 , daily momentum studies 9, 10 and 11 DMAs are trending upwards.

•  Immediate resistance is located at 1.6720(38.2% fib), any close above will push the pair towards 1.6796 (23.6 % fib).

• Immediate support is seen at 1.6645 (14DMA) and break below could take the pair towards 1.6622(50% fib).

Recommendation: Good to buy on dips around 1.6680, with stop loss of 1.6560 and target price of 1.6760

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