FxWirePro: EUR/AUD rebounds but bears are not done yet

• EUR/AUD rebounded sharply  on Tuesday as risk aversion weighed on risk-sensitive Australian dollar despite RBA’s hawkish hold  .

• The RBA on Tuesday left interest rates unchanged at 3.60%, noting that higher core inflation, strong consumer demand, and improving housing conditions warranted a cautious approach to future policy adjustments.

• At the end of its two-day meeting, the RBA noted that inflationary forces appeared entrenched in the economy but gave little clarity on whether further monetary easing was on the table.

• Markets had largely ruled out a rate cut this week after a stronger-than-expected third-quarter inflation reading and now assign only slim odds to an easing move in December.

• Immediate resistance is located at 1.7718(50 % fib), any close above will push the pair towards 1.7787(SMA 20).

• Support is seen at 1.7559 (38.2% fib) and break below could take the pair towards 1.7534 (Lower BB).

Recommendation: Good to sell  around 1.7740, with stop loss of 1.7800 and target price of 1.7600