• EUR/AUD rally extended towards 1.6600 level on Monday as euro gained ground at the start of the week against weaker Australian dollar.
• Euro has notably benefited from a slightly weaker Australian dollar at the beginning of the week. However, despite this momentum, there are also potential obstacles on the horizon.
• Technical signals show RSI is at 58 bullish , daily momentum studies 9, 10 and 11 DMAs are trending upwards.
• Immediate resistance is located at 1.6603 (23.6% fib), any close above will push the pair towards 1.6629 (Higher BB).
• Immediate support is seen at 1.6499 (38.2% fib) and break below could take the pair towards 1.6415(50%fib ).
Recommendation: Good to buy on dips around 1.6570, with stop loss of 1.6450 and target price of 1.6650
