FxWirePro: EUR/AUD downside pressure builds, key support level in focus

• EUR/AUD dipped on Monday as Australian Dollar firmed  growing expectations that the RBA will raise interest rates again next week.

• The RBA has raised its Official Cash Rate by 75 basis points this year to 4.35%, as persistent inflation pressures remain a key concern for policymakers.

•  Markets are now pricing in a 25-basis-point rate increase by the Reserve Bank of Australia on September 29 as increasingly likely, with futures implying the move is close to fully priced.

• Markets will focus on Tuesday’s comments from RBA policymakers, including Hunter, Governor Michele Bullock and Monetary Policy Board member Ross, for fresh signals on the outlook for monetary policy..

• Immediate resistance is located at 1.6154 (SMA 20), any close above will push the pair towards 1.6214(SMA 20).

• Immediate support is seen at 1.6087(23.6%fib) and break below could take the pair towards 1.6051(Lower BB)
    
Recommendation: Good to sell around 1.6110, with stop loss of 1.6180 and target price of 1.6050