• EUR/AUD initially dipped on Friday as investors adopted a cautious stance ahead of a series of economic data releases this week.
• Investors will monitor several secondary releases this week, including trade data, current account figures, final CPI, and PMI surveys.
• The ECB’s consumer inflation expectations report and Germany’s final Q2 GDP reading will also attract close market attention.
• A daily close above 38.2%fib will further improve the technical outlook, and open the possibility of a rally towards 1.8100 level.
• Technical signals are bullish as RSI is at 58, daily momentum studies 5,9,21 DMA are trending north.
• Immediate resistance is located at 1.8072(38.2%fib), any close above will push the pair towards 1.8152 (April 10th high).
• Strong support is seen at 1.6315 (50%fib) and break below could take the pair towards 1.6258 (61.8%fib).
Recommendation: Good to buy around 1.7920 with stop loss of 1.7860 and target price of 1.8100
