• EUR/AUD initially gained on Monday on weak China data but gave up as investors awaited RBA meeting on Tuesday.
• China's factory activity contracted at a steeper pace in April as widespread COVID-19 lockdowns halted industrial production and disrupted supply chains.
• The Reserve Bank of Australia is expected to raise interest rates on Tuesday, joining a long list of central banks.
• From a technical viewpoint, RSI is strongly bullish at 54 daily momentum studies, 5, 10 and 11 are trending up.
• Immediate resistance is located at 1.4973 (38.2%fib), any close above will push the pair towards 1.5094(Higher BB).
• Immediate support is seen at 1.4861(5DMA)and break below could take the pair towards 1.4818 (50%fib).
Recommendation: Good to buy on dips around 1.4880, with stop loss of 1.4760 and target price of 1.5100
