•EUR/AUD dipped on Tuesday as Australian dollar firmed after RBA interest rate decision.
• Australia’s central bank held its cash rate at 4.35% for a second straight meeting, saying growth was slowing as expected but warning it could hike again if needed to curb inflation..
• RBA Governor Michele Bullock struck a hawkish tone, saying another rate hike was “quite possible” and keeping alive the prospect of a fourth increase this year.
• After Bullock's hawkish comments, swaps now imply around a 50% chance of a rate increase in November, while pricing in 80% likelihood of a move by early next year.
• Immediate resistance is located at 1.6351(SMA 20), any close above will push the pair towards 1.6417(50%fib)
• Support is seen at 1.6335(38.2%fib)and break below could take the pair towards 1.6234 (23.6%fib)
Recommendation: Good to sell around 1.6350, with stop loss of 1.6400 and target price of 1.6300
