FxWirePro: EUR/AUD dips as Australian dollar firms ahead of expected RBA hike

• EUR/AUD dipped   on Monday   as  Australian dollar was supported by expectations around the RBA decision and improving risk sentiment.

•The Reserve Bank of Australia (RBA) will announce its latest policy decision on Tuesday, with markets expecting a 25-basis-point increase to 4.10%.

• The RBA policy announcement is due at 0330 GMT, with markets pricing in a 25 bp hike, forward guidance and tone will be key.

• The hike would extend the RBA’s tightening cycle, emphasizing the Board’s determination to address sustained inflationary pressures, given that trimmed mean inflation remains elevated.

• Meanwhile, FOMC meeting on Wednesday is expected to leave the federal funds rate unchanged at 3.50%–3.75%.

• Strong  resistance is located at 1.6359(Daily high), any close above will push the pair towards 1.6495(SMA 20)

• Immediate support is seen at 1.6143 (23.6%fib) and break below could take the pair towards 1.6071(Lower BB).

  Recommendation: Good to sell   around 1.6500, with stop loss of 1.6600  and target price of 1.6250