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FxWirePro: EUR/AUD outlook weaker on renewed downside pressure

• EUR/AUD dipped on Monday   as a pause in hostilities between the United States and Iran triggered a sharp decline in oil prices and improved risk sentment. 

• Oil prices tumbled more than 6% on Monday as the U.S. and Iran paused strikes, boosting hopes for a diplomatic breakthrough and the resumption of shipping through the Strait of Hormuz.

• The Ifo Institute's survey on Monday showed German business morale improved more than expected in July, driven by significantly stronger expectations.

• Looking ahead euro zone  data schedule includes flash second-quarter GDP, July economic sentiment and consumer confidence, flash inflation, and June unemployment figures.

•   Immediate resistance is located at 1.6356(SMA 20), any close above will push the pair towards 1.6382(50%fib)

• Support is seen at 1.6270(38.2%fib)and break below could take the pair towards 1.6220(Lower BB)

Recommendation: Good to sell around 1.6280 , with stop loss of 1.6360 and target price of 1.6200
 

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