• EUR/AUD gained slightly on Monday as euro benefiting from short-covering and expectations of an ECB rate increase next week..
• Data showed German inflation accelerated in August as the Iran conflict pushed up energy prices, but the increase was smaller than expected and core inflation remained stable..
•Inflation rose to 2.9% year-on-year from 2.8% the month before, preliminary data from the federal statistics office showed on Monday.
• Investors have largely priced in a September interest rate increase from the European Central Bank.
• • Euro zone inflation data and U.S. payrolls figures will be closely watched later this week for fresh clues on the outlook for interest rates..
• Immediate resistance is located at 1.6253(38.2% fib), any close above will push the pair towards 1.6310(SMA 20).
• Immediate support is seen at 1.6175(Lower BB) and break below could take the pair towards 1.6123(23.6%fiib).
Recommendation: Good to sell round 1.6230, with stop loss of 1.6300 and target price of 1.6150
