• EUR/AUD dipped on Tuesday as the Australian dollar strengthened after the Reserve Bank of Australia’s (RBA) monetary policy announcement.
• The RBA kept its Official Cash Rate (OCR) unchanged at 3.6% as expected, while signaling uncertainty over near-term rate cuts amid lingering upside inflation risks.
• Wrapping up its two-day policy meeting, the Reserve Bank of Australia noted that while caution on policy remains appropriate, the board is well-prepared to react to global developments.
• The decision came as signs pointed to inflation potentially exceeding earlier forecasts, leading investors to trim expectations for future rate cuts.
• Immediate resistance is located at 1.7787 (SMA 20), any close above will push the pair towards 1.7963 (Higher BB)
• Strong support is seen at 1.7716(50%fib) and break below could take the pair towards 1.7629(Lower BB).
Recommendation: Good to sell around 1.7760, with stop loss of 1.7800 and target price of 1.7700
