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FxWirePro: EUR/AUD shorts look for key support breaks after RBA's unexpected 25-bps rate hike

• EUR/AUD fell  on Tuesday as Australian dollar popped higher after RBA surprise 25 BP hike to 3.85%.

• Reserve Bank of Australia (RBA) unexpectedly lifted the cash rate to 3.85% and said further tightening may be required to ensure that inflation returns to target.

• The pair is likely  to see more downside  and drop  below1.6584(38.2 % fib) has heightened chance of drop towards1.6350 level. 

• Immediate resistance is located at 1.6584(38.2 % fib), any close above will push the pair towards 1.6603 (5DMA).

• Immediate support is seen at 1.6483(April 25th low) and break below could take the pair towards 1.6361 (50%fib).

Recommendation: Good to sell  around 1.6490, with stop loss of 1.6560  and target price of 1.6400.
 

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