• EUR/AUD slipped lower on Monday as recent China’s stimulus measures and higher iron ore prices boosted Australian dollar.
• Investors are now focused on upcoming Australian economic reports this week, including the latest retail sales, building permits, and trade figure.
• On the data front, The euro zone releases inflation figures this week, along with producer prices and unemployment.
• From a technical viewpoint, RSI is strongly bearish at 31, daily momentum studies, 11, 14 and 21 daily MAs are lower .
• Immediate resistance is located at 1.6215 (38.2% fib), any close above will push the pair towards 1.6248 (Sep 27th high).
• Immediate support is seen at 1.6070(23.6% fib) and break below could take the pair towards 1.5984(Lower BB).
Recommendation: Good to sell around 1.6090 with stop loss of 1.6150 and target price of 1.6000.
