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

• EUR/AUD slipped on Tuesday as rising RBA rate-hike expectations and higher metal prices underpinned the Australian dollar.

• The December RBA minutes highlighted uncertainty over whether current policy settings remain sufficiently tight.

• Policymakers said they stand ready to tighten if inflation fails to cool, sharpening focus on the Q4 CPI due January 28.

•Rate expectations have swung, with a February hike priced at roughly 25%, a 25 bp rise fully baked in by July, and 44 bps of hikes implied for 2026.

•   Gold and silver bounced back after the previous session’s sharp selloff, largely due to year-end profit-taking after a strong year.

•  Immediate resistance is located at 1.7617(SMA 20), any close above will push the pair towards 1.7633(38.2%fib).

•  Support is seen at 1.7507 (23.6%fib) and break below could take the pair towards 1.7465(Lower BB).

Recommendation: Good to sell around 1.7560 with stop loss of 1.7630 and target price of 1.7460