• EUR/ AUD initially gained but gave up ground on Thursday as investors digested unexpected fall in headline U.S. CPI.
• U.S. consumer prices unexpectedly slipped 0.1% in June after being unchanged in May, while the annual increase was the smallest in a year, reinforcing views that inflation was abating.
• Mean while a report showed German inflation eased to 2.5% in June, confirming preliminary data, opening the door for further cuts from the European Central Bank.
• Technical signals show the pair could lose more ground in the short-term as RSI is at 40,while moving averages and MACD are trending lower.
• Immediate resistance is located at 1.6097( 5DMA), any close above will push the pair towards 1.6147 (38.2%fib).
• Immediate support is seen at 1.6028 (23.6%fib) and break below could take the pair towards 1.6008(Lower BB).
Recommendation: Good to sell around 1.6070, with stop loss of 1.6160 and target price of 1.6000
