• EUR/AUD dipped on Monday as renewed U.S.-Iran tensions stoked inflation concerns, offsetting stronger-than-expected euro zone economic data..
• Brent crude futures hovered near six-week highs and approached $100 a barrel as strikes on vessels in and around the Strait of Hormuz heightened fears of prolonged supply disruptions.
• The higher oil prices have fuelled inflation concerns, triggering a global bond selloff last week and strengthening the case for further policy tightening.
• The European Central Bank is widely expected to raise rates by 25 basis points on Thursday, while investors are focused on U.S. CPI data this week after a stronger-than-expected jobs report boosted expectations of a Federal Reserve rate hike this month.
• Immediate resistance is located at 1.6205 (38.2%fib), any close above will push the pair towards 1.6256(SMA 20).
• Immediate support is seen at 1.6089(23.6%fib) and break below could take the pair towards 1.6064(Lower BB)
Recommendation: Good to sell around 1.6110, with stop loss of 1.6180 and target price of 1.6050
