• EUR/AUD rally extended towards 1.8000 on Monday as spreading coronavirus and oil plunge forced investors to dump commodity related currencies.
• However, pair eroded some of day's gains in volatile trading .
• Any downside correction is likely to be temporary as barrier at 1.7086 (61.8% fib) is set to restricting lower move.
• Technical signals show RSI is at 78.05 oversold , daily momentum studies 9, 10 and 11 DMAs are trending upwards.
• On the upside, Immediate resistance is located at 1.7486 (38.2% fib), any close above will push the pair towards 1.7731 (23.6 % fib).
• Immediate support is seen at 1.7086 (61.8% fib) and break below could take the pair towards 1.6933 (9 DMA).
Recommendation: Good to buy on dips around 1.7200, with stop loss of 1.6900 and target price of 1.7950.
