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FxWirePro: EUR/AUD gains modestly but outlook is bearish


• EUR/AUD edged higher on Monday    as Fed rate-hike bets overshadow ECB tightening expectations.

• Lagarde reiterated on Monday that interest rates would not necessarily move in line with energy costs.

• On the economy, Lagarde remained upbeat, saying manufacturing was performing solidly, the labour market remained resilient and investment should continue to support growth...

• Lagarde said fiscal support had increased to around 0.1 percentage point of euro zone GDP, while the measures were less temporary and targeted than previously expected.

• Immediate resistance is located at 1.6238(38.2%fib), any close above will push the pair towards 1.6370(50%fib).

• Immediate support is seen at 1.6155(SMA20) and break below could take the pair towards 1.6069(23.6%fib)
    
Recommendation: Good to sell around 1.6220, with stop loss of 1.6280 and target price of 1.6150
 

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