• EUR/AUD edged higher but gains were limited as investors largely stuck to the sidelines after renewed tensions in the Middle East.
• The latest U.S.-Iran strikes have dimmed hopes for an imminent end to the war, and analysts have cautioned against being too quick to price in a resolution.
• Oil prices rose over 4.8% on Monday. They had settled back to pre-war levels towards the end of June, but have since traded higher due to uncertainty about the conflict..
• Markets are also contending with shifting interest rate expectations as central banks around the world try to gauge the inflationary impact of higher oil prices.
• According to analysts,the European Central Bank is expected to deliver at least a quarter-point rate hike this year
• Immediate resistance is located at 1.6573(Higher BB), any close above will push the pair towards 1.6607(50%fib)
• Support is seen at 1.6398(38.2%fib)and break below could take the pair towards 1.6326(Lower BB)
Recommendation: Good to sell around 1.6480 , with stop loss of 1.6560 and target price of 1.6400
