FxWirePro: EUR/AUD edges down, remains on back foot

• EUR/AUD dipped  on Monday  as risk sentiment    improved  driven by growing hopes for a U.S.-Iran peace deal.

• Markets stayed upbeat despite the U.S. and Iran downplaying chances of a near-term deal, after U.S. President Donald Trump said the two sides had largely agreed on a framework to reopen the Strait of Hormuz. 

• Investors will look to inflation data from major euro zone economies this week for signs of the Iran war's impact. Markets expect two European Central Bank interest rate increases of 25 basis points each by year-end,.

• Investors are also awaiting key Australian economic releases this week, including the April monthly CPI report on Wednesday and Q1 capital expenditure data on Thursday, which could provide further direction for the currency.
 
•  Immediate resistance is located at 1.6318(38.2%fib), any close above will push the pair towards 1.6377(SMA 20)

• Support is seen at 1.6159(Lower BB) and break below could take the pair towards 1.6099(23.6%fib).

Recommendation: Good to sell   around 1.6240, with stop loss of 1.6330 and target price of 1.6180