FxWirePro: EUR/AUD bearish as RBA hike boosts Australian dollar

• EUR/AUD dipped on Wednesday   as Australian  dollar firmed after RBA  raised rates by 25 bps, first hike in two years.

•  The RBA ended its February meeting with a unanimous 25-basis-point rate hike to 3.85%, its first increase in two years and only six months after the last cut in August.  

•  Australia’s data calendar heats up later this week, with January S&P PMIs on Wednesday and December trade figures on Thursday expected to show a A$3.25 billion surplus, which could influence the Aussie dollar.

• Technical signals are bearish as RSI is at 21, momentum studies  11,14  and 21 DMAs are trending down. 

• Strong  resistance is located at 1.6996(38.2% fib), any close above will push the pair towards 1.7185 (50% fib)

• Immediate support is seen at 1.6793 (23.6% fib) and break below could take the pair towards 1.6715 (Lower BB).

  Recommendation: Good to sell   around 1.6850, with stop loss of 1.6950 and target price of 1.6750