• EUR/AUD advanced toward 1.6500 level as risk aversion and falling commodity prices pressured Australian dollar.
• Copper prices fell to a two-week low,oil prices dropped around 5% on signs of a deal to resolve a dispute that has halted Libyan crude production.
• Traders are now looking forward to Australia's second-quarter GDP data on Wednesday for new insights into the future direction of monetary policy.
• Technical signals are bullish as RSI is lower, daily momentum studies 5, 9 and 1 DMAs are trending up
• Immediate resistance is located at 1.6513 (38.2%fib), any close above will push the pair towards 1.6600(Psychological level)
• Support is seen at 1.6399(38.2 %fib ) and break below could take the pair towards 1.6278(50 %fib).
Recommendation: Good to buy around 1.6490 , with stop loss of 1.6400 and target price of 1.6560.
