• EUR/AUD fell towards 1.6200 level on Tuesday as hawkish Reserve Bank of Australia and higher commodity prices boosted Australian dollar
• The RBA kept interest rates steady, stressing the need for tight policy, unlike the U.S. Federal Reserve, which started its easing cycle with a 50 basis point cut last week.
• Oil gained more than 2%. Copper prices jumped to a 10-week high, aided by expectations of improving demand in top consumer China.
• At GMT 17:03, the pair was trading down 0.21 percent at 1.6214.
• Technical signals are bearish as RSI has turned sharply lower, daily momentum studies 5, 9 and 1 DMAs are trending down.
• Immediate resistance is located at 1.6355 (50%fib), any close above will push the pair towards 1.6420(Sep 24th high)
• Support is seen at 1.6195(23.6 %fib ) and break below could take the pair towards 1.6122(Lower BB).
Recommendation: Good to sell around 1.6230 , with stop loss of 1.6330 and target price of 1.6150
