• EUR/AUD strengthened on Tuesday as Australian dollar weakened after RBA raised interest rates as expected but sounded a note of caution on further moves.
• The Reserve Bank of Australia (RBA) lifted its cash rate 50 basis points to 1.85%, but noted it was a difficult task to curb inflation while also keeping the economy on an even keel.
• From a technical viewpoint, RSI is turning up, daily momentum studies, 5, 9 and 11 daily MAs all climb.
• Immediate resistance is located at 1.4778 (38.2%fib), any close above will push the pair towards 1.4942 (50%fib).
• Immediate support is seen at 1.4675 (11DMA) and break below could take the pair towards 1.4563 (23.6%fib).
Recommendation: Good to buy on dips around 1.4670, with stop loss of 1.4560 and target price of 1.4800.
