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FxWirePro: EUR/AUD bulls back away from 1.5650 as focus shifts to RBA policy decision

• EUR/AUD initially gained but  on Monday but fell on  reinforced risk-off sentiment ahead of RBA policy decision.

• RBA is likely deliver another 25bp hike at its   policy meeting on Tuesday, 7 Feb. A 50bp hike cannot be ruled out.

• The pair currently is approaching resistance at 38.2%,. A break above would unmask 1.5650 level in the short term.

• From a technical viewpoint, RSI  is strongly bullish at 56, daily momentum studies, 5, 10 and 11 daily  MAs are pointing higher.

• Immediate resistance is located at 1.5597 (38.2%), any close above will push the pair towards 1.5651 (Daily high).

• Immediate support is seen at 1.5531 (50%fib) and break below could take the pair towards 1.5522 (30DMA).

Recommendation: Good to buy on dips around 1.5580, with stop loss of 1.5500and target price of 1.5680.
 

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