• EUR/AUD initially gained on Monday but gave up ground as investors weighed new concerns over the Omicron variant and waited for host of central bank meetings this week.
• Fears over the Omicron variant of COVID-19 weighed on markets after British Prime Minister Boris Johnson warned of a tidal wave of new cases.
• Technical signals show the pair could lose gain more ground in the short-term as RSI is at 53 bullish, daily momentum studies 9, 10 and 11 DMAs are trending up.
• Immediate resistance is located at 1.5851 ( 38.2%fib), any close above will push the pair towards 1.5977(23.6% fib)
• Support is seen at 1.5757(50%fib ) and break below could take the pair towards 1.5657(61.8%fib).
Recommendation: Good to buy around 1.5800, with stop loss of 1.5660 and target price of 1.5870.
