• EUR/AUD strengthened on Monday as lower commodities prices and escalating Russia/Ukraine war weighed on Australian dollar.
• Oil prices fell more than $2 per barrel after reports that Israel and Lebanon had agreed to the a deal to end the Israel-Hezbollah conflict,
• Australia is set to release its monthly inflation data on Wednesday, with forecasts predicting a rise to 2.3% in October, up from 2.1%. However, the results are expected to have little impact on rate expectations.
• Rally towards is 1.6250 possible if EUR/AUD bulls overcome resistance at 50%%fib.
• Immediate resistance is located at 1.6194(SMA9), any close above will push the pair towards 1.6216(50%fib).
• Strong support is seen at 1.6123 (38.2%fib) and break below could take the pair towards 1.606 (23.6%fib).
Recommendation: Good to buy around 1.6120 with stop loss of 1.6050 and target price of 1.6240
