• EUR/ AUD dipped below 1.6400 level on Tuesday as Australian dollar firmed on upbeat household spending data.
• Australian household spending rose strongly for a second month in June as consumers splashed out on electric vehicles amid high petrol prices, data showed on Tuesday, suggesting demand was holding up in the face of rising borrowing costs..
• Australian Bureau of Statistics data showed the Monthly Household Spending Indicator (MHSI) rose 0.8% in June to A$81.3 billion (US$56.92 billion), well above economists' expectations for a 0.2% increase after a 1.2% gain in May.
• Annual household spending growth accelerated to 6.0% in June, marking a three-month high, while real spending increased 0.7% over the June quarter to A$227.8 billion.
• EUR/ AUD has seen range 1.6449-1.6365 the pair is likely to be fall towards 1.6300level.
• Immediate resistance is located at 1.6456(Daily high), any close above will push the pair towards 1.6532(50%fib).
• Immediate support is seen at 1.6346(38.2% fib) and break below could take the pair towards 1.6210(Lower BB).
Recommendation: Good to sell round 1.6370, with stop loss of 1.6430 and target price of 1.6300
