FxWirePro: EUR/AUD slips following RBA minutes , plunge to test a key fibo grows

• EUR/AUD dipped on Tuesday as the Australian dollar firmed after the RBA’s December meeting minutes reinforced a hawkish policy tone.

• The RBA’s December meeting minutes indicated policymakers saw increased inflation risks following higher-than-expected CPI data in October and Q3..

• The minutes highlighted that a portion of the inflation uptick could be attributable to volatile influences, with greater clarity expected from Q4 data in late January.

• According to the minutes, policymakers were divided over whether financial conditions remained restrictive enough, as some cited strong bank lending and rising house prices as evidence of easing conditions.

•  Immediate resistance is located at 1.7634(38.2%fib), any close above will push the pair towards 1.7653(SMA 20).

•  Support is seen at 1.7498(Lower BB) and break below could take the pair towards 1.7468(23.6%fib).

Recommendation: Good to sell around 1.7620 with stop loss of 1.7700 and target price of 1.7550