FxWirePro: EUR/AUD rebounds, critical resistance lies ahead

• EUR/AUD rallied on Monday as Australian dollar was weighed by rising  COVID-19 cases.

• Record daily case numbers were reported on Monday in the states of Victoria, Queensland, South Australia and Tasmania, as well as the Australian Capital Territory.

• The Aussie’s weakness came even as oil prices rose   on hopes of further demand recovery in 2022.

• EUR/AUD bulls  confidence is running high, a test of the  1.5800(Psychological level )is likely . 

• From a technical viewpoint, RSI  is strongly bullish at 51, daily momentum studies, 5, 10 and 11 DMA’s are trading norh.

• Immediate resistance is located at 1.5748 (23.6%fb), any close above will push the pair towards 1.5888 (23.6%fib).

• Immediate support is seen at 1.5679 (38.2%fb)and break below could take the pair towards 1.5621 (50%fib).

Recommendation: Good to buy on dips around 1.5700, with stop loss of 1.5610 and target price of 1.5800