• EUR/AUD slipped lower on Tuesday after data showed Euro zone inflation dips below 2%.
• Euro zone inflation dipped below 2% for the first time since mid-2021 in September, reinforcing an already solid case for a European Central Bank rate cut.
• Inflation in the 20 countries sharing the euro currency eased to 1.8% in September from 2.2% in August, Eurostat data showed on Tuesday.
• From a technical viewpoint, RSI is strongly bearish at 31, daily momentum studies, 11, 14 and 21 daily MAs are lower .
• Immediate resistance is located at 1.6120 (Daily high), any close above will push the pair towards 1.6206 (38.2% fib).
• Immediate support is seen at 1.6040(23.6% fib) and break below could take the pair towards 1.6000(Psychological level).
Recommendation: Good to sell around 1.6090 with stop loss of 1.6150 and target price of 1.6000
