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• EUR/AUD eased towards on 1.6520 on Monday as indecision persists ahead of Australian Q2 CPI data on Wednesday.
• Australian Q2 CPI data is set to be released on Wednesday. An annual rise in Australia's CPI of 4% would increase expectations for an August rate hike by the Reserve Bank of Australia (RBA).
• EUR/AUD has seen a 1.6516 -1.6583 range on Monday, 23.6%fib resistance remains a stumbling block. Break above would entice bulls.
• Immediate resistance is located at 1.6602(23.6%fib), any close above will push the pair towards 1.6690(April 19th high).
• Strong support is seen at 1.6490(38.2% fib) and break below could take the pair towards 1.6412 (SMA 9 ).
Recommendation: Good to buy around 1.6510, with stop loss of 1.6400 and target price of 1.6590
