• EUR/AUD rose higher on Monday as weaker Australian dollar and hawkish repricing of ECB rate hike expectations benefit tied the pair.
• Money markets are pricing in 92 bps of ECB rate hikes by year-end from around 95 bps earlier in the session.
• The pair reaches 1.5203 (Daily high). The pair was last trading at 1.5194. EUR/AUD bulls confidence is running high, a rise towards 1.5300 level is likely.
• From a technical viewpoint, RSI is strongly bullish at 63, daily momentum studies, 5, 10 and 21 daily MAs all climb.
• Immediate resistance is located at 1.5204(Daily high), any close above will push the pair towards 1.5304 (38.2% fib).
• Immediate support is seen at 1.5121(50% fib) and break below could take the pair towards 1.5000(Psychological level).
Recommendation: Good to buy on dips around 1.5170, with stop loss of 1.5050 and target price of 1.5310
