FxWirePro: EUR/AUD edges higher but outlook still bearish

EUR/AUD edged higher but gains were limited as investors largely stuck to the sidelines after renewed tensions in the Middle East. The latest U.S.-Iran strikes have dimmed hopes for an imminent end to the war, and...

• EUR/AUD edged higher but gains were limited as investors largely stuck to the sidelines after renewed tensions in the Middle East. • The latest U.S.-Iran strikes have dimmed hopes for an imminent end to the war, and analysts have cautioned against being too quick to price in a resolution. •

Oil prices rose over 4.8% on Monday. They had settled back to pre-war levels towards the end of June, but have since traded higher due to uncertainty about the conflict.. • Markets are also contending with shifting interest rate expectations as central banks around the world try to gauge the inflationary impact of higher oil prices.

• According to analysts,the European Central Bank is expected to deliver at least a quarter-point rate hike this year • Immediate resistance is located at 1.6573(Higher BB), any close above will push the pair towards 1.6607(50%fib) • Support is seen at 1.6398(38.2%fib)and break below could take the pair towards 1.6326(Lower BB) Recommendation: Good to sell around 1.6480 , with stop loss of 1.6560 and target price of 1.6400