The Euro (EUR) was slayed last week falling to 1.6450 (0.6080) levels against the Australian Dollar (AUD) as risk on flow demand stimulates the AUD. The cross wasn’t able to kick on past long-term support at 0.6080 (1.6450), bouncing back towards 0.6050 (1.6530) this morning. ECB’s Holzmann said the ECB must be prepared to raise interest rates again if needed, confirming that rates would not be cut any time soon. The ECB left rates unchanged in late October after 10 consecutive hikes. Today’s RBA meeting will confirm a hike in their interest rate from 4.10% to 4.35%. We expect a retest of 0.6080 (1.6450).
Current Level: 1.6520
Resistance: 1.6600
Support: 1.6460
Last Weeks Range: 1.6454 – 1.6759