EUR/AUD Price Forecast: Climbs to two-day high above 1.6500

• EUR/AUD gains 0.67% after RBA holds rates steady, signaling a dovish outlook with easing inflation pressures.
• Despite gains, potential ECB rate cuts loom, influencing near-term trading dynamics for the cross-pair.
• Technical levels to watch: Support at 1.6450 and 1.6400, with resistance near the recent peak at 1.6540.

The EUR/AUD soared to a new two-day peak on Tuesday after the Reserve Bank of Australia (RBA) kept rates unchanged yet adopted a dovish stance, as they noted inflation is beginning to ease towards its 3% goal. At the time of writing, the cross-pair trades at 1.6497, gains over 0.67%.

EUR/AUD Price Forecast: Technical outlook

The pair began the week lower, but the RBA’s decision pushed the EUR/AUD pair toward a two-day high of 1.6540. Nevertheless, traders pared some of those gains, as the European Central Bank (ECB) is expected to lower rates at the December 12 meeting.

Momentum remains slightly bullish, yet the Relative Strength Index (RSI) suggests that sellers have the upper hand in the short term.

The EUR/AUD first support would be the 1.6450 area, followed by the 1.6400 psychological mark. On further weakness, the next support would be the 100-day Simple Moving Average (SMA) at 1.6382, followed by the 200-day SMA at 1.6364. A breach of the latter will expose 1.6300.

Conversely, if buyers clear 1.6500, immediate resistance would be 1.6540, followed by 1.6561, the December 6 peak.

EUR/AUD Price Chart – Daily