• EUR/AUD edged higher on Tuesday as sentiment around the Middle East conflict remained cautious.
•Hopes for a durable easing in tensions were tempered after Israel struck the historic port city of Tyre in southern Lebanon on Tuesday, killing at least eight people.
Tehran had warned on Monday it would resume hostilities if Israel continued attacks on its ally Hezbollah in Lebanon.
•The European Central Bank is widely expected to raise interest rates by 25 basis points on Thursday as inflation worries persist, though investors will be watching closely for guidance on how much further policymakers may go..
• Immediate resistance is located at 1.6457(Psychological level), any close above will push the pair towards 1.6600 (50% fib).
• Strong support is seen at 1.6371(50% fib) and break below could take the pair towards 1.6284(61.8% fib)
Recommendation: Good to buy around 1.6410, with stop loss of 1.6250 and target price of 1.6480
