• EUR/AUD initially dipped but recovered some ground on Monday as traders awaited Reserve Bank of Australia’s policy decision.
• The Reserve Bank of Australia’s policy decision is due at 0330 GMT on Tuesday, with markets widely expecting no change in rates; focus will be on the accompanying statement for any hawkish tone.
• The Monetary Policy Statement (MPS) will be released alongside the RBA’s quarterly economic forecasts, providing insights into growth, inflation, and labor market expectations. This will be followed by RBA Governor Michele Bullock’s press conference at 04:30 GMT.
• Meanwhile, Euro zone manufacturing activity stalled in October, with the final HCOB Eurozone Manufacturing PMI, compiled by S&P Global, coming in at 50.0 exactly at the threshold separating growth from contraction..
• Immediate resistance is located at 1.7691 (38.2%fib), any close above will push the pair towards 1.7789 (50%fib)
• Support is seen at 1.7579 (23.6%fib) and break below could take the pair towards 1.7531(Lower BB).
Recommendation: Good to sell on rally around 1.7650, with stop loss of 1.7700 and target price of 1.7580.
