FxWirePro: EUR/AUD dips after ECB rate decision , eyes 1.6150 level

• EUR/AUD slipped on Thursday as investors reacted to the European Central Bank rate decision.

•  The European Central Bank left interest rates unchanged as expected, but warned that risks to inflation and growth have intensified due to the Iran conflict and related energy shock.

•The European Central Bank kept its deposit rate unchanged at 2%, in line with expectations and prior guidance from policymakers

•  Officials said higher oil and gas prices are pushing up inflation while also weighing on economic activity, as disruptions in fuel flows through the Strait of Hormuz add further uncertainty to the eurozone outlook.

• European Central Bank President Christine Lagarde said on Thursday that higher energy prices are likely to keep inflation above the ECB’s 2% target in the near term.

• Strong  resistance is located at 1.6415(38.2%fib), any close above will push the pair towards 1.6453(SMA 20)

• Immediate support is seen at 1.6173(23.6%fib) and break below could take the pair towards 1.6112(Lower BB).

  Recommendation: Good to sell   around 1.6300, with stop loss of 1.6450 and target price of 1.6150