• EUR/AUD dipped on Monday as traders reposition ahead of the Reserve Bank of Australia (RBA) interest rate decision due on Tuesday.
• Market focus is firmly on the Reserve Bank of Australia policy decision at 03:30 GMT, where a 25 basis point rate hike is widely expected.
• Attention will be on the accompanying Reserve Bank of Australia statement and forward guidance, as the tone regarding inflation risks and future tightening will be critical in shaping near-term AUD direction.
• Technical signals are bearish as RSI is at 25, momentum studies 11,14 and 21 DMAs are trending down.
• Immediate resistance is located at 1.7410 (38.2%fib), any close above will push the pair towards 1.7252(SMA 20).
• Immediate support is seen at 1.6907(23.6%fib) and break below could take the pair towards 1.6819 (Lower BB).
Recommendation: Good to sell around 1.7000 with stop loss of 1.7080 and target price of 1.6900
