• EUR/AUD initially gained on Tuesday but gave up ground after minutes of the RBA July policy meeting released on Tuesday provided no major surprises on the rate outlook..
• Minutes showed the (RBA) board considered raising the cash rate by 25 basis points to 4.35%, before deciding on a pause, acknowledging that both set of arguments were strong.
• Technical signals show the pair could lose gain more ground in the short-term as RSI is at 59 bullish, daily momentum studies 9, 10 and 11 DMAs are trending up.
• Immediate resistance is located at 1.6545( 23.6%fib), any close above will push the pair towards 1.6561 (Higher BB)
• Support is seen at 1.6418 (38.2%fib ) and break below could take the pair towards 1.6337 (14DMA).
Recommendation: Good to buy around 1.6460, with stop loss of 1.6370 and target price of 1.6550.
