• EUR/AUD strengthened on Tuesday as investors positioned ahead of an expected European Central Bank rate cut Thursday.
• European Central Bank is expected to cut its deposit rate this month by another 25 bps to 3.25%.
• Markets now attach a 93% chance of an ECB rate cut, while 70 out of 75 economists polled lean in favour of a 25 basis point cut.
• Immediate resistance is located at 1.6291(38.2%fib), any close above will push the pair towards 1.6371(23.6%fib)
• Support is seen at 1.6238(50%fib)and break below could take the pair towards 1.6179 (61.8%fib)
Recommendation: Good to buy around 1.6250 , with stop loss of 1.6170 and target price of 1.6300
