So far this Monday in Asia, the pair is showing a lack of definition but has closed the upside gap (15-pips) seen at the weekly opening, now holding at a flat 1.2470 and looking poised to retest the 1.2450 support area. However, market participants are likely to remain sidelined ahead of German inflation data (Oct CPI) on offer in the session ahead, and ahead of a widely anticipated, tentatively scheduled BoJ rate decision on Tuesday.
The 50-day EMA (1.2433) offers immediate support on dips, and support below there is offered at 1.2390 (Sep 5 high) and 1.2355 (38.2%, 1.1605/1.2825 upswing). The October 11 low at 1.2505 is likely to attract sellers, should EUR/AUD’s short-term outlook turn bullish; above there, a 23.6% Fibonacci retracement level lies at 1.2535. Daily RSI, at 45, remains in neutral territory but is aiming lower, suggesting future downside potential.