EURAUD Chart Technical Outlook set to rise on monetary policy divergence between ECB and RBA
EUR/AUD broad bias is bullish, as ECB can be more hawkish than the RBA, which paused the tightening policy at the last meeting but signaled more hikes if needed.
The pair bounced from the previous week’s low and trades higher as AUD is under pressure from the Chinese weak services data and the US-China tension putting pressure on markets sentiment.
I expect the pair to continue higher ahead of the expected hawkish FOMC minutes today.
Technical indicators and retailers’ sentiment support the bullish side.
Resistances: 1.6340, 1.6400
Supports: 1.6240, 1.6200, 1.6150
