FxWirePro: EUR/AUD downside pressure builds, key support level in focus

• EUR/AUD dipped on Tuesday  as Australian dollar firmed against euro after RBA rate decision .  

• The RBA raised interest rates again, marking its third hike this year, and cautioned that rising oil prices from Middle East tensions will sustain inflation pressures.
• The RBA lifted its cash rate by 25 bps to 4.35%, reversing all three cuts made in 2025, with an 8–1 vote signalling a hawkish shift from March’s 5–4 split.

• The RBA emphasised that after three rate hikes, policy is “well placed to respond to developments,” suggesting a pause may be ahead.

• Michele Bullock said the current stance is slightly restrictive, enabling a pause to evaluate economic risks linked to the conflict.
 
•  Immediate resistance is located at 1.6395(SMA 20), any close above will push the pair towards 1.6498 (38.2%fib)

• Support is seen at 1.6207(Lower BB) and break below could take the pair towards 1.6156(23.6%fib).

Recommendation: Good to sell   around 1.6270, with stop loss of 1.6350 and target price of 1.6150