• EUR/AUD dipped on Monday as investors reassessed the monetary policy outlook for both the Federal Reserve and the European Central Bank.
• A softer-than-expected U.S. nonfarm payrolls report last week prompted markets to scale back bets on a near-term Fed rate hike, while weaker eurozone inflation figures reduced expectations of further ECB tightening in 2026.
• On the data front, the ISM Services Purchasing Managers Index (PMI) came in at 54.0 in June, matching market expectations.
• The S&P Global eurozone construction PMI total activity index fell to 42.8 from 43.7 in May. The decline in output was sharper than the post-pandemic average, S&P Gobal said.
• Immediate resistance is located at 1.6470(50%fib), any close above will push the pair towards 1.6526(June 6th high)
• Support is seen at 1.6321(38.2%fib)and break below could take the pair towards 1.6283(Lower BB)
Recommendation: Good to sell around 1.6480 , with stop loss of 1.6560 and target price of 1.6400
