• EUR/AUD strengthened on Monday as Australian dollar was weighed down by continued COVID lockdown in Australia and weaker commodity prices.
• Australia’s most populous state of New South Wales expanded its COVID-19 lockdown to another rural town on Monday.
• This week's focus is on the Australian economy as business and consumer confidence indicators are likely to be hit by aggressive lockdowns.
• Technical leans bullish as RSI is at 55 bullish, and 5, 9,11 DMA’s are trending north.
• Immediate resistance is located at 1.6034(23.6%fib), any close above will push the pair towards 1.6101 (July 28th high).
• Immediate support is seen at 1.5995 (21 DMA) and break below could take the pair towards 1.5952 (38.2%fib).
Recommendation: Good to buy on dips around 1.6000, with stop loss of 1.5940 and target price of 1.6100
