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FxWirePro:EUR/AUD steadies around 1.6370 ahead of RBA policy meeting

• EUR/AUD edged higher on Monday  as Australian dollar weakened ahead of upcoming Reserve Bank of Australia (RBA) December policy meeting. 

• The Australian rates market has priced in no chance of a rate hike for the upcoming meeting. The likelihood of a 25 basis point hike in the coming year has decreased from 60% to about 25%.

• The euro  erased some of Fridays ’s losses  against the Aussie dollar , the pair was last up  at 0.46% at  1.6369  

• Technical signals are bearish   as RSI is at 35, daily momentum studies  5, 9 and 11  DMAs are trending south. 

•  Immediate resistance is located at 1.6392 (38.2%fib ), any close above will push the pair towards 1.6450(5DMA).

• Strong support is seen at 1.6271(23.6%fib) and break below could take the pair towards 1.6239 (Jul 13th low).

Recommendation: Good to sell around 1.6380, with stop loss of 1.6500 and target price of 1.6270.

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