• 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
