FxWirePro: EUR/AUD extends gains, potential for bullish continuation

• EUR/AUD strengthened   on Monday as lower oil prices and higher Treasury yields weighed on commodity linked currencies like Australian dollar.

•  Treasury yields firmed after 2-year and 7-year note auctions and a report showing the Dallas Fed manufacturing index improved to -3.

•  WTI oil tumbled 5.5% as supply worries eased after Israel's retaliatory strike bypassed Iran production facilities.

• Rally towards is  1.6500 possible if  EUR/AUD bulls overcome resistance at 23.6%fib.

• Immediate resistance is located at 1.6448(23.6%fib), any close above will push the pair towards 1.6478(Higher BB).

• Strong support is seen at 1.6360 (38.2%fib) and break below could take the pair towards 1.6302 (50%fib).

Recommendation: Good to buy around 1.6400 with stop loss of 1.6280 and target price of 1.6480