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FxWirePro: EUR/AUD falls below 1.6400,market await RBA rate decision for further direction

• EUR/AUD declined on Monday     as  China's better-than-feared factory activity data and higher oil prices  buoyed Australian dollar

• The rate decision by the Reserve Bank of Australia is the key risk event this week, with markets suspecting policymakers will hold rates steady but a slim majority of economists favouring a hike.

•A close below   support at 38.2%fib will give further momentum to bears, opening the way for a run towards 1.6250 level.

• From a technical viewpoint, the moving averages are pointing downwards, while the RSI  has turned lower.

• Immediate resistance is located at 1.6422( 14DMA), any close above will push the pair towards 1.6476 ( 50%fib).

• Strong support is seen at 1.6345(38.2%fib) and break below could take the pair towards 1.6287 (July 27th low).

Recommendation: Be on sidelines

  • Market Data
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