FxWirePro: EUR/AUD trends higher, but faces potential pitfalls

• The EUR/AUD gained some ground on Monday  as investors awaited a busy week of central bank decisions and delayed U.S. economic data.

• This week, the Bank of Japan is expected to hike rates by 25 bps to 0.75%, while the Bank of England may cut rates by the same amount to 3.75%.

• The European Central Bank, Sweden’s Riksbank, and Norway’s Norges Bank are all expected to keep rates on hold.

• A slew of U.S. economic data delayed by the government shutdown will also be released, providing investors with a long-awaited update on the world’s largest economy. 

•  Immediate resistance is located at 1.7700(SMA 20), any close above will push the pair towards 1.7767(50%fib).

•  Support is seen at 1.7475(38.2%fib) and break below could take the pair towards 1.7418(Lower BB).

Recommendation: Good to buy around 1.7680  with stop loss of 1.7600   and target price of 1.7760