• EUR/AUD traded in tight range as markets kept a close watch on Middle East developments and the inflationary impact of surging oil prices.
• The U.S. struck Iranian military sites over the weekend, with Iran’s Revolutionary Guards responding on Monday by targeting a U.S. base, as tensions escalate amid ongoing peace talks.
• Brent crude oil prices gained more than 3% after the latest strikes. Higher oil prices can accelerate inflation and keep interest rates higher for longer
• Australia's Q1 GDP data is due Wednesday, with growth expected to slow to 0.5% q/q from 0.8% in Q4, reflecting the impact of the war and higher interest rates.
• RBA Governor Michele Bullock will testify before lawmakers on Thursday, followed by Deputy Governor Andrew Hauser on Friday, with both expected to strike a hawkish tone as inflation remains above target.
• Immediate resistance is located at 1.6341 (38.2%fib), any close above will push the pair towards 1.6372(SMA 20)
• Support is seen at 1.6199( 23.6%fib) and break below could take the pair towards 1.6125(Lower BB).
Recommendation: Good to sell around 1.6270, with stop loss of 1.6360 and target price of 1.6200
