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FxWirePro: EUR/AUD changes short term trend from neutral to bearish

• EUR/AUD edged higher on Wednesday   but gains were limited  as investors digested  German regional inflation data.

• German inflation rose slightly more than forecast to 2.8% in May,analysts polled   had forecast a reading of 2.7%, after a year-on-year increase in consumer prices of 2.4% in April.

• Economists are paying close attention to the data from the wider euro zone on Friday.

• A daily close below 23.6%  fib will  open the possibility of a drop towards 1.6200 level. 

•  Immediate resistance is located at 1.6360(38.2% fib), any close above will push the pair towards 1.6378 (Higher BB)

• Support is seen at 1.6280(23.6% fib) and break below could take the pair towards 1.6237(Lower BB).

Recommendation: Good to sell  around 1.6320, with stop loss of 1.6460 and target price of 1.6240
 

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