• EUR/AUD steadied on Monday as investors awaited data this week for clarity on the economic outlook.
• Their focus now lies on key inflation data, including that of the U.S. and the euro zone, through the week.
• A rally towards 1.6900 is possible if EUR/NZD bulls overcome resistance at 1.6848( 23.6%fib).
• Technical signals are turning bullish as RSI is turning higher at 59, daily momentum studies 5, 9 and 10 DMAs are trending up.
• Immediate resistance is located at 1.6848( 23.6%fib), any close above will push the pair towards 1.6888 ( Sep 5th high)
• Strong support is seen at 1.6765(5 DMA ) and break below could take the pair towards 1.6721 (38.2% fib).
Recommendation: Good to buy around 1.6770 with stop loss of 1.6700 and target price of 1.6850
