• EUR/AUD edged higher on Monday as Australian dollar weakened ahead of upcoming Reserve Bank of Australia (RBA) December policy meeting.
• The Australian rates market has priced in no chance of a rate hike for the upcoming meeting. The likelihood of a 25 basis point hike in the coming year has decreased from 60% to about 25%.
• The euro erased some of Fridays ’s losses against the Aussie dollar , the pair was last up at 0.46% at 1.6369
• Technical signals are bearish as RSI is at 35, daily momentum studies 5, 9 and 11 DMAs are trending south.
• Immediate resistance is located at 1.6392 (38.2%fib ), any close above will push the pair towards 1.6450(5DMA).
• Strong support is seen at 1.6271(23.6%fib) and break below could take the pair towards 1.6239 (Jul 13th low).
Recommendation: Good to sell around 1.6380, with stop loss of 1.6500 and target price of 1.6270.
