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FxWirePro: EUR/AUD cedes early gains ,outlook bearish

• EUR/AUD initially gained but gave up ground  as investors digested RBA rate decision and awaited fresh catalyst.

• Australia’s central bank raised its cash rate to a 15-year high of 4.60% on Tuesday, its fourth hike this year, warning that inflation remains too high and further tightening may be needed..

• The Reserve Bank of Australia unanimously raised rates by 25 basis points at its September meeting, taking total tightening this year to 100 basis points.

• Markets had strongly priced in the hike as core inflation remained at 3.6%, above the RBA’s 2%-3% target range, with traders expecting at least one more rate increase ahead..

• Immediate resistance is located at 1.6259(Higher BB), any close above will push the pair towards 1.6285(50%fib).

• Immediate support is seen at 1.6195(38.2%fib) and break below could take the pair towards 1.6165 (SMA 20)
    
Recommendation: Good to sell around 1.6260, with stop loss of 1.6380 and target price of 1.6180
 

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