• EUR/AUD strengthened on Monday as investors positioned ahead of a Reserve Bank of Australia rate decision on Tuesday .
• Markets are closely watching the Reserve Bank of Australia (RBA) as it prepares to announce its latest interest rate decision.
• The RBA is widely expected to cut rates by 25 bps to 3.60% on Tuesday to support weak growth and tame soft inflation.
• According to poll of economists softer inflation and a cooling economy will lead the RBA to ease policy more aggressively than in May, delivering its third 25 bp cut on Tuesday.
• Technical signals are bullish as RSI is heading up at 63, daily momentum studies 5, 9 and 1 DMAs are trending north.
• Immediate resistance is located at 1.8091 (Higher BB), any close above will push the pair towards 1.8165(38.2%fib)
• Support is seen at 1.7890 (50%fib)and break below could take the pair towards 1.7816 (Jan 27th low)
Recommendation: Good to buy around 1.8020 , with stop loss of 1.7900 and target price of 1.8100
