• EUR/AUD gained on Monday as euro benefit from EU-UK trade deal hope.
• Investors appeared cautiously optimistic on the chances of a deal, particularly as the end of the Brexit transition period on Dec. 31st draws closer.
• EUR/AUD remains vulnerable, only a break and daily close above 1.6254 (38.2% fib) will shift bias to the upside.
• Technical signals are bearish as RSI is at 39, daily momentum studies 5, 9 are trending down.
• Immediate resistance is located at 1.6157 (5 DMA), any close above will push the pair towards 1.6254 (38.2% fib).
• Immediate support is seen at 1.6060(5 DMA) and break below could take the pair towards 1.6000 (Psychological level).
Recommendation: Good to sell around 1.6150, with stop loss of 1.6200 and target price of 1.6060.
