• EUR/AUD hovered near 1.6100 level on Tuesday as investors awaited the European Central Bank rate decisions and U.S inflation data later this week.
• Investors expect the ECB to raise rates by 25 basis points on Thursday, with markets also pricing in another hike by year-end and one more in 2027 despite limited appetite for further tightening.
• U.S. inflation data due later this week will be closely watched after stronger-than-expected jobs data boosted expectations for another Fed rate hike this month.
• On the economic front, German exports unexpectedly declined in July, with weaker shipments to the EU and China highlighting the fragility of Germany’s trade-driven recovery.
• Immediate resistance is located at 1.6141 (Sep 8th high), any close above will push the pair towards 1.6242(38.2%fib).
• Immediate support is seen at 1.6091(23.6%fib) and break below could take the pair towards 1.6007(Lower BB)
Recommendation: Good to sell around 1.6110, with stop loss of 1.6180 and target price of 1.6050
