• EUR/AUD steadied around 1,6566 on Monday as investors awaited the European Central Bank's policy decision later this week.
•Investors are waiting for the ECB's monetary policy for hints on when future interest rate cut would occur .Traders have priced in a cut of about 130 basis points in interest rates this year, with a 96% chance of the first cut coming in June
• A rally towards bigger resistance in the 1.6650 zone is possible if bulls overcome resistance at 38.2%fib .
• Technical signals are bullish as RSI is at 62, daily momentum studies 5,9 and 10 DMAs are trending up.
• Immediate resistance is located at 1.6594(38.2%fib), any close above will push the pair towards 1.6650 (Higher BB).
• Strong support is seen at 1.6519(50%fib ) and break below could take the pair towards 1.6435( (61.8%fib).
Recommendation: Good to buy around 1.6520, with stop loss of 1.6450 and target price of 1.6580
