FxWirePro: EUR/AUD slides as traders stay defensive ahead of the RBA rate decision

• The EUR/AUD dipped on Monday as investors awaited the Reserve Bank of Australia’s rate decision.

• Inflation dropped to 2.1% last quarter, its lowest in nearly four years and near the RBA’s 2%-3% target range’s lower limit. This gives the RBA room to resume rate cuts after last month’s unexpected pause.

• The RBA is widely expected to cut rates by 25 basis points to 3.6% on Tuesday, following a pause last month as it awaited CPI data.

• Attention also turns to Thursday’s jobs report, with forecasts predicting a 25,000 increase in employment for July and the unemployment rate remaining steady at 4.3%.

• Immediate resistance is located at 1.7936(Aug 7th high ), any close above will push the pair towards 1.8000(Higher BB).

• Strong support is seen at 1.7726(50% fib) and break below could take the pair towards 1.7702(Lower BB).

Recommendation: Good to buy around 1.7720 with stop loss of 1.7650  and target price of 1.7800