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FxWirePro: EUR/AUD edges lower, remain on backfoot

• EUR/AUD dipped on Monday as investors turned cautious ahead of a busy week of economic data, with upcoming releases expected to provide fresh clues on the monetary policy outlook.

• Markets are awaiting several major European indicators this week, with German and French GDP, the Ifo survey and Spanish inflation data likely to provide fresh clues on the ECB’s policy stance amid renewed energy-price pressures.

• Money markets are increasingly pricing a more hawkish ECB, with geopolitical tensions expected to keep inflation elevated and push the deposit rate toward 3% by late 2027.

• Immediate resistance is located at 1.6330(SMA 20), any close above will push the pair towards 1.6460(Higher BB)

• Support is seen at 1.6264(Lower BB)and break below could take the pair towards 1.6144(23.6%fib)

Recommendation: Good to sell around 1.6320 , with stop loss of 1.6370 and target price of 1.6250


 

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