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FxWirePro: EUR/AUD shorts maintain the advantage after RBA raises rates

• EUR/AUD declined on Tuesday  as the pair came under pressure after the RBA surprised markets with a larger-than-expected 25bp hike.

• EUR/AUD  dipped following  hawkish guidance, to 1.4721  trading before recovering some of its losses.

• The pair currently is approaching support at 1.7470(23.6% fib). A break under 1.7470 would unmask 1.7300 level in the short term.

• Technical signals are bearish as RSI is at 49, daily momentum studies  5, 9 and 10 DMAs are trending down. 

• Immediate resistance is located at 1.7500 ( 5 DMA), any close above will push the pair towards 1.7629 (9 DMA)

• Support is seen at 1.7421 (23.6% fib ) and break below could take the pair towards 1.4558 (21st April low)..

Recommendation: Good to sell  around 1.4830, with stop loss of 1.4970 and target price of 1.4730.
 

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