• EUR/AUD rose higher on Tuesday as Australian dollar slipped lower after RBA delivered a dovish rate hike.
• The Reserve Bank of Australia (RBA) lifted its cash rateby 25 basis points to 4.35%, ending four months of pauses and taking rates to their highest since late 2011.
• The pair is holding near today's high, but repeated failures to push above 1.1900 is discouraging longs.
• Technical signals are mixed as RSI is at 49, daily momentum studies 11, 14 and 21 DMAs are trending flat.
• Immediate resistance is located at 1.6643(21DMA ), any close above will push the pair towards 1.6689(50% fib).
• Strong support is seen at 1.6588(38.2% fib) and break below could take the pair towards 1.6526 (Oct 6th low).
Recommendation: Good to sell around 1.6640, with stop loss of 1.6740 and target price of 1.6560
