• EUR/AUD dipped on Monday as risk sentiment improved, markets looked beyond peace-talk failure.
•US President Donald Trump ordered a naval blockade targeting Iranian ports after U.S.-Iran talks in Islamabad over the weekend ended without a breakthrough.
• The deadline for the start of a U.S. military blockade passed, while Tehran threatened to retaliate against ports of its Gulf neighbours, if Iranian ports were threatened.
•Rising tensions pushed oil prices above the $100-per-barrel mark, adding to inflation worries that have remained on the forefront since the conflict began.
• On the monetary policy front, markets are currently pricing in nearly three 25-basis-point rate increases from the European Central Bank by year-end.
• Strong resistance is located at 1.6686(50% fib), any close above will push the pair towards 1.6872(50%fib)
• Immediate support is seen at 1.6509 (38.2%fib) and break below could take the pair towards 1.6348(Lower BB).
Recommendation: Good to sell around 1.6600, with stop loss of 1.6650 and target price of 1.6530
