• EUR/AUD gained on Monday as weaker than expected china data weighed on Australian dollar.
• Commodities like oil, copper were hit on reduced China-led global growth. Australia’s lockdown also weighs on sentiment as virus count continued to grow.
• EUR/AUD bulls confidence is running high, a test of the 1.6132 (Higher BB) highly seems likely.
• From a technical viewpoint, RSI is strongly bullish at 58, daily momentum studies, 5, 10 and 11 daily MAs are pointing higher.
• Immediate resistance is located at 1.6086 (Daily high), any close above will push the pair towards 1.6132 (Higher BB).
• Immediate support is seen at 1.5990(38.2% fib) and break below could take the pair towards 1.5900 (50%fib).
Recommendation: Good to buy on dips around 1.6015, with stop loss of 1.5900 and target price of 1.6100.
