• EUR/AUD dipped on Monday but downsife was limitd as investors remained hopeful of a diplomatic solution to the war in the Middle East.
• Despite lingering tensions, sentiment found some support from reports that Pakistan remains confident Iran could still participate in peace talks, even after earlier rejecting them..
• Adding to the cautious optimism, Donald Trump continued to signal progress toward a potential peace and nuclear agreement, helping risk-sensitive currencies like the Aussie hold gains.
• On the data front, traders will watch U.S. March retail sales on Tuesday and April S&P flash PMIs on Thursday for further direction.
• Strong resistance is located at 1.6569(50% fib), any close above will push the pair towards 1.6614(SMA 20)
• Immediate support is seen at 1.6375 (38.2%fib) and break below could take the pair towards 1.6308(Lower BB).
Recommendation: Good to sell around 1.6420, with stop loss of 1.6500 and target price of 1.6360
