FxWirePro: EUR/AUD drifts lower,could be on verge of a bigger drop

• EUR/AUD declined on Tuesday as  hawkish RBA policy update bolstered Australian dollar against euro.

•. Reserve Bank of Australia raised interest rates by a quarter-point to an 11-year high of 4.1%, and warned that further tightening may be required to ensure that inflation returns to target.

•The pair is approaching 38.2%fib,a daily close below   will accelerate towards 1.5860 level in the short term.

 • From a technical viewpoint, the moving averages are pointing downwards, while the RSI  is   bearish at 34

• Immediate resistance is located at 1.6154(50%fib), any close above will push the pair towards 1.6238 ( 5DMA).

• Strong support is seen at 1.5991 (38.2%fib) and break below could take the pair towards 1.5875 (20th March low).

Recommendation: Good to sell around 1.6030, with stop loss of 1.6140 and target price of 1.5940.