• EUR/AUD initially dipped on Monday but it regained some ground as traders digested Friday’s jobs report, with attention turning to U.S. inflation data.
• U.S. consumer price index (CPI) data due on Thursday will be in focus to assess whether more rate hikes are needed to tame inflation.
• EUR/AUD is focus is on 23.6%fib resistance , a break above will accelerate further uptrend.
• From a technical viewpoint, RSI is strongly bullish at 60, daily momentum studies, 5, 10 and 11 daily MAs are pointing higher.
• Immediate resistance is located at 1.6813(23.6%fib), any close above will push the pair towards 1.6843 (Higher BB).
• Immediate support is seen at 1.6709 (5DMA) and break below could take the pair towards 1.6660(38.2%fib).
Recommendation: Good to buy on dips around 1.6710, with stop loss of 1.6600 and target price of 1.6770
