FxWirePro: EUR/AUD drifts lower ,could be on verge of bigger drop

• EUR/AUD dipped    on Monday    as risk sentiment improved, markets looked beyond peace-talk failure.

•US President Donald Trump ordered a naval blockade targeting Iranian ports after U.S.-Iran talks in Islamabad over the weekend ended without a breakthrough.

•  The deadline for the start of a U.S. military blockade passed, ⁠while Tehran threatened to retaliate against ports of its Gulf neighbours, if Iranian ports were threatened.

•Rising ​tensions pushed oil prices above the $100-per-barrel mark, adding to inflation worries that have remained on the forefront ​since the conflict began.

• On the monetary policy front, markets are currently pricing in nearly three 25-basis-point rate increases from the European Central Bank by year-end.

• Strong  resistance is located at 1.6686(50% fib), any close above will push the pair towards 1.6872(50%fib)

• Immediate support is seen at 1.6509 (38.2%fib) and break below could take the pair towards 1.6348(Lower BB).

  Recommendation: Good to sell   around 1.6600, with stop loss of 1.6650 and target price of 1.6530