• GBP/AUD advanced on Monday as Treasury yields and falling commodity prices pressured Australian dollar.
• Oil price stumbled as worries about a wider Middle East war eased. Brent futures LCOc1 settled at $71.42 a barrel, down $4.63 or 6.09%. WTI U.S. crude futures CLc1 settled at $67.38, down $4.40 or 6.13%.
• Copper prices retreated on Monday as Chinese data suggesting poor demand prospects added to disappointment with economic stimulus measures from the top consumer, weighing on sentiment.
• The week brings the U.S. jobs report for October on Friday, while investors are keeping a close eye on political news with the U.S. presidential election just over a week away.
• Technical signals are bullish as RSI is higher, daily momentum studies 5, 9 and 1 DMAs are trending up
• Immediate resistance is located at 1.9717(23.6%fib), any close above will push the pair towards 1.9753(Higher BB)
• Support is seen at 1.6222(38.2 %fib ) and break below could take the pair towards 1.9450 (50 %fib).
Recommendation: Good to buy around 1.9700 , with stop loss of 1.9600 and target price of 1.9780
