FxWirePro: EUR/AUD neutral in the near-term, scope for downward resumption

• EUR/AUD eased  on Tuesday     as Australian dollar firmed after Reserve Bank of Australia’s (RBA) interest rate decision.

• Australia’s central bank raised interest rates for a second consecutive month in a closely contested decision on Tuesday, underscoring its growing concern over persistent inflation risks.

•  Policymakers warned that inflation faces a “material” upside threat, particularly as the global environment becomes increasingly volatile amid the intensifying conflict in the Middle East.

•Wrapping up its March policy meeting, the Reserve Bank of Australia raised its main cash rate by 25 basis points to 4.1%, marking a 10-month high and effectively reversing two of the three rate cuts delivered last year.

• The decision reflects the central bank’s cautious but firm stance, as it balances domestic economic conditions with external uncertainties..

• Technical signals are bearish as RSI is at 31, momentum studies  11,14  and 21 DMAs are trending down. 

• Strong  resistance is located at 1.6315 (Daily high), any close above will push the pair towards 1.6428(38.2%fib)

• Immediate support is seen at 1.6139 (23.6% fib) and break below could take the pair towards 1.6057(Lower BB).

  Recommendation: Good to sell   around 1.6200, with stop loss of 1.6300 and target price of 1.6120