• EUR/AUD fell on Tuesday as Australian dollar popped higher after RBA surprise 25 BP hike to 3.85%.
• Reserve Bank of Australia (RBA) unexpectedly lifted the cash rate to 3.85% and said further tightening may be required to ensure that inflation returns to target.
• The pair is likely to see more downside and drop below1.6584(38.2 % fib) has heightened chance of drop towards1.6350 level.
• Immediate resistance is located at 1.6584(38.2 % fib), any close above will push the pair towards 1.6603 (5DMA).
• Immediate support is seen at 1.6483(April 25th low) and break below could take the pair towards 1.6361 (50%fib).
Recommendation: Good to sell around 1.6490, with stop loss of 1.6560 and target price of 1.6400.
