• EUR/AUD rallied on Monday as risk assets like Australian dollar came under pressure as China concerns weigh on sentiment
• Australian dollar was also dented by data showing that Australian retail sales suffered their first fall of 2022 in October.
• A rally towards bigger resistance in 1.5707 (23.6%fib) zone is possible should EUR/AUD bulls overcome resistance at 1.5661.
• From a technical viewpoint, RSI is strongly bullish at 57, daily momentum studies, 5, 10 and 21 daily MAs all climb.
• Immediate resistance is located at 1.5661(Daily high), any close above will push the pair towards 1.5707 (23.6%fib).
• Immediate support is seen at 1.5447(5DMA)and break below could take the pair towards 1.5399 (38.2%fib).
Recommendation: Good to buy on dips around 1.5540, with stop loss of 1.5450and target price of 1.5640
