• EUR/AUD edged lower on Monday but downside was limited as investors remained cautious ahead of key economic data releases from Eurozone later in the week.
•Investors are waiting for key economic data this week to gain insights into the policy direction of the European Central Bank, which is scheduled to meet on September 12
• The highlight of this week is the EU inflation flash estimate set for Friday. Alongside this, consumer price data from France and Italy.
• Technical signals are strongly bullish as RSI is at 47, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.6518(Aug 27th high), any close above will push the pair towards 1.6618(38.2%fib).
• Strong support is seen at 1.6463(50%fib) and break below could take the pair towards 1.6385(Lower BB).
Recommendation: Good to sell around 1.6480, with stop loss of 1.6570 and target price of 1.6400
