FxWirePro: EUR/AUD downtrend slows, but bearish sentiment remains

• The EUR/AUD edged higher   on Monday  as investors geared up for interest rate decisions from Reserve Bank of Australia. 

•The Reserve Bank of Australia meets for the final time this year this week week, and a string of strong readings on inflation, growth, and household spending has eliminated any prospect of a cut to the 3.60% cash rate.

•A run of hot economic data has led markets to abandon any hope of another easing from the Reserve Bank of Australia and even price in a rate hike for late 2026.

•Swaps imply the Reserve Bank of Australia will remain on hold until late next year, but are pricing in a 75% probability for a rate hike by the end of 2026

•Meanwhile, markets have priced out an ECB rate cut in 2026, with traders now seeing zero chance of a move by July

•  Immediate resistance is located at 1.7628(Dec 5th high), any close above will push the pair towards 1.7727 (38.2%fib).

•  Support is seen at 1.7499(23.6%fib) and break below could take the pair towards 1.7467(Lower BB).

Recommendation: Good to sell around 1.7570 with stop loss of 1.7650 and target price of 1.7450