• EUR/AUD strengthened on Tuesday as Australian dollar slipped after the Reserve Bank of Australia (RBA) kept rates steady and held back from taking a hawkish stance.
• Wrapping up its two-day May policy meeting, the Reserve Bank of Australia (RBA) kept rates at a 12-year high of 4.35%.However, it stopped short of reinstating a tightening bias.
• At GMT 16:28, the pair was trading up 0.27 percent at 1.6296 after reaching daily high at 1.6289.
• Technical signals are bearish as RSI is heading down at 40, daily momentum studies 5, 9 and 11 DMAs are trending down.
• Immediate resistance is located at 1.6321 ( 38.2% fib), any close above will push the pair towards 1.6392(50% fib)
• Support is seen at 1.6228(23.6%fib ) and break below could take the pair towards 1.6189(Lower BB).
Recommendation: Good to sell on rally around 1.6320, with stop loss of 1.6430 and target price of 1.6240
