• EUR/AUD extended rally on Monday as reduced political uncertainties in Europe supported euro ahead of upcoming July ECB meeting.
• The ECB is widely anticipated to leave its key rates unchanged. The ECB will likely signal continued progress towards the 2% inflation target.
• The meeting is expected to reiterate data dependency and is not anticipated to be a market-moving event.
• The euro jumped 0.24% at 1.6155 against Australian dollar , highest level since July 3rd 2024.
• Immediate resistance is located at 1.6127 (23.6%fib), any close above will push the pair towards 1.6147 (Higher BB).
• Immediate support is seen at 1.6066 (38.2% fib) and break below could take the pair towards 1.6035 (Lower BB).
Recommendation: Good to buy on dips around 1.6110, with stop loss of 1.6050 and target price of 1.6180
