FxWirePro: EUR/AUD extends drop, faces 23.6% fib support

• The EUR/AUD slipped   lower  on Tuesday as RBA's bullock's hawkish tone boosted Australian dollar.

•Australia’s central bank on Tuesday held interest rates steady at 3.6% and signalled that further policy easing is unlikely, warning the next move could be a hike if inflation pressures persist.

•Concluding the final policy meeting of the year, Governor Michele Bullock said the board did not explicitly debate a rate hike, but did discuss the conditions under which rates might need to rise again.

•Investors pulled forward expectations for rate hikes next year, with markets pricing a 28% probability of a move in February and close to a 50% chance by March..

•  Immediate resistance is located at 1.7648(38.2%fib), any close above will push the pair towards 1.7730 (SMA 20).

•  Support is seen at 1.7469(Lower BB) and break below could take the pair towards 1.7407(23.6%fib).

Recommendation: Good to sell around 1.7550 with stop loss of 1.7640 and target price of 1.7450