• EUR/AUD traded in tight range on Monday as market awaited for fresh catalyst for further movement.
• On the data front,Eurozone investor confidence unexpectedly declined in August, as a fresh U.S. trade deal fueled concerns over both current conditions and the economic outlook, Sentix data showed Monday.
• The Sentix investor sentiment index fell steeply to -3.7 in August from 4.5 in July. The measure was expected to climb to 6.2.
• Looking ahead, market participants will closely monitor the U.S. July ISM non-manufacturing PMI and comments from Federal Reserve officials, including Daly, Bostic, and Musalem, later this week.
• Technical signals remain bullish, with RSI at 55 and the 5 , 9 , and 11 day moving averages all trending higher.
• Immediate resistance is located at 1.7937(Daily high), any close above will push the pair towards 1.8056(38.2%fib)
• Strong support is seen at 1.7841(SMA 20) and break below could take the pair towards 1.7662(50%fib).
Recommendation: Good to buy around 1.7840, with stop loss of 1.7780 and target price of 1.7900
