• EUR/AUD rose on Monday as fears of a new wave of COVID-19 infections in Asia dampened demand for risk-sensitive Australian dollar.
• The pair currently is approaching resistance at 1.5701((23.6% fib). A break above 1.5701 would unmask 1.5800 level in the short term.
• Technical signals are bullish as RSI is at 60, daily momentum studies 5, 9 and 10 DMAs are trending up.
• Immediate resistance is located at 1.5701 ( 23.6%fib), any close above will push the pair towards 1.5800 (Psychological level)
• Strong support is seen at 1.5620(38.2% fib ) and break below could take the pair towards 1.5595 (5 DMA).
Recommendation: Good to buy around 1.5650, with stop loss of 1.5555 and target price of 1.5730.
