• EUR/AUD dipped on Monday as Australian dollar strengthened against euro ahead of RBA’s interest rate decision.
• The Reserve Bank of Australia (RBA) is widely expected to lift its cash rate by 50 basis points to 1.85% on Tuesday, the fourth hike since May.
• The pair currently is approaching resistance at 1.4504 (23.6%fib). A break below will unmask 1.4400 level in the short term.
• From a technical viewpoint, RSI is bearish at 43 daily momentum studies, 5, 10 and 11 are trending down.
• Immediate resistance is located at 1.4667 (5DMA), any close above will push the pair towards 1.4877(38.2%fib).
• Immediate support is seen at 1.4504 (23.6%fib)and break below could take the pair towards 1.4431(Lower BB).
Recommendation: Good to sell around 1.4600, with stop loss of 1.4800 and target price of 1.4430
