• 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.
