• EUR/AUD steadied around 1.6827 on Monday as euro attracted buyers ahead of Thursday’s ECB's policy meeting.
• Market participants will be keenly awaiting any indications from ECB President Christine Lagarde regarding an acceleration in QT or plans for further liquidity absorption.
• A rally towards is possible if EUR/AUD bulls overcome resistance at 23.6%fib(1.6845).
• From a technical viewpoint, RSI is strongly bullish at 65, daily momentum studies, 5, 10 and 21 daily MAs all climb.
• Immediate resistance is located at 1.6845 (23.6%fib), any close above will push the pair towards 1.6895 (Sep 5th high).
• Immediate support is seen at 1.6713(38.2%fb)and break below could take the pair towards 1.6634(5DMA).
Recommendation: Good to buy on dips around 1.6820, with stop loss of 1.6650 and target price of 1.6870
