• EUR/AUD firmed on Monday as the air was supported by upbeat Eurozone consumer confidence data and weaker Australian dollar.
• Eurozone consumer confidence improved to -14.9 in the latest reading, up from -15.5 previously, reflecting a modest 0.6-point improvement and signaling a slight pickup in sentiment compared to the prior period.
• The euro zone’s data calendar this week is relatively light, with highlights including PMIs across Europe, consumer confidence, the ECB’s inflation outlook, and Germany’s Ifo business survey.
• Technical are favoring bullish sentiment as RSI is at 55 and the pair is trading above 21 & 30-DMAs.
• Immediate resistance is located at 1.7901(50%fib), any close above will push the pair towards 1.7980(Higher BB).
• Strong support is seen at 1.7795(61.8%fib) and break below could take the pair towards 1.7727(Sep 17th low).
Recommendation: Good to buy around 1.7890 with stop loss of 1.7800 and target price of 1.7950
