• EUR/AUD declined on Tuesday as hawkish RBA policy update bolstered Australian dollar against euro.
•. Reserve Bank of Australia raised interest rates by a quarter-point to an 11-year high of 4.1%, and warned that further tightening may be required to ensure that inflation returns to target.
•The pair is approaching 38.2%fib,a daily close below will accelerate towards 1.5860 level in the short term.
• From a technical viewpoint, the moving averages are pointing downwards, while the RSI is bearish at 34
• Immediate resistance is located at 1.6154(50%fib), any close above will push the pair towards 1.6238 ( 5DMA).
• Strong support is seen at 1.5991 (38.2%fib) and break below could take the pair towards 1.5875 (20th March low).
Recommendation: Good to sell around 1.6030, with stop loss of 1.6140 and target price of 1.5940.
