FxWirePro: EUR/AUD falls below 1.6800, bears keep the advantage

• EUR/AUD dipped on Monday as hawkish RBA expectation and higher metal and oil price boosted Australia .

• Spot gold rose 1.9% to $5,056.21 per ounce after a 4% jump on Friday, while silver climbed 6.3% to $82.86.

• Markets will watch RBA Deputy Governor Andrew Hauser’s remarks on Wednesday and Governor Michele Bullock’s testimony before lawmakers on Thursday.

• Markets imply a 74% chance of another rate rise in May to 4.1%. There is an additional tightening of 37 basis points expected this year.

• On the data front, Australian household spending fell in December as consumers cut back following strong year-end sales spending, data showed Monday.

•  Strong  resistance is located at 1.6917(Feb 9th high), any close above will push the pair towards 1.7050 (38.2%fib)

• Immediate support is seen at 1.6774 (23.6% fib) and break below could take the pair towards 1.6686 (Lower BB).

  Recommendation: Good to sell   around 1.6800, with stop loss of 1.6850 and target price of 1.6720