• EUR/AUD strengthened on Monday after European Central Bank officials backed the need for more interest rate hikes.
• Chief Economist Philip Lane indicated more rate hikes from the ECB in coming months even amid signs of easing price pressures.
• It's widely expected ECB will hike rates pace in March following a rise in inflation.
• Technical signals indicate bullish movementum, as RSI is at 66, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.5875 (23.6%fib), any close above will push the pair towards 1.5923 (Higher BB).
• Strong support is seen at 1.5761 (38.2%fib) and break below could take the pair towards 1.5736 (9DMA )
Recommendation: Good to buy around 1.5840, with stop loss of 1.5740 and target price of 1.5950
