• EUR/AUD traded in tight ranges on Monday as traders awaited key data from the Eurozone bloc
• Markets are waiting for inflation data, after comments from Lagarde on that was on the hawkish side but not more hawkish than expected.
• A daily close above 23.6%fib will further improve the technical outlook, and open the possibility of a rally towards 1.6950 level.
• Technicals highlight upside risks. The 14- and 21-day moving averages lend support, daily RSI is bullish at 55.
• Immediate resistance is located at 1.6834( 5DMA), any close above will push the pair towards 1.6935 (23.6%fib)
• Support is seen at 1.6745(38.2% fib ) and break below could take the pair towards 1.6609(50% fib).
Recommendation: Good to buy around 1.6820, with stop loss of 1.6740 and target price of 1.6900
