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FxWirePro: EUR/AUD uptrend gains momentum after RBA delivers a dovish rate hike but hurdles ahead

• EUR/AUD rose higher  on Tuesday as  Australian dollar slipped lower after  RBA delivered a dovish rate hike.

• The Reserve Bank of Australia (RBA) lifted its cash rateby 25 basis points to 4.35%, ending four months of pauses and taking rates to their highest since late 2011.

• The pair is holding near today's high, but repeated failures to push above 1.1900 is discouraging longs.

• Technical signals are mixed  as RSI is at 49, daily momentum studies  11, 14 and 21 DMAs are trending flat.

• Immediate resistance is located at 1.6643(21DMA ), any close above will push the pair towards 1.6689(50% fib).

• Strong support is seen at 1.6588(38.2% fib) and break below could take the pair towards 1.6526  (Oct 6th low).

Recommendation: Good to sell  around 1.6640, with stop loss of 1.6740 and target price of 1.6560
 

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