FxWirePro: EUR/AUD dips towards 1.6200 level, scope for further downside

• EUR/AUD dipped on Tuesday    as investors assessed euro zone inflation data for signs of the Middle East conflict's impact on the economy.

•  Euro zone inflation accelerated further last month, driven by energy and services, bolstering the already strong case for a small European Central Bank interest rate hike later this month, Eurostat data showed on Tuesday.

• Consumer prices in the 21 nations sharing the euro accelerated to 3.2% in May from 3.0% a month earlier, well above the ECB's 2% target but in line with a Reuters poll.

• The increase was driven by a 10.9% rise in energy costs and an unexpectedly large pickup in services inflation to 3.5% from 3.0%.

• The data is closely watched by the ECB, but are not expected to significantly change the policy outlook given officials' view that elevated inflation justifies higher borrowing costs.

 •  Immediate resistance is located at 1.6249(SMA 20), any close above will push the pair towards 1.6330(Higher BB)

• Support is seen at 1.6161( Lower BB) and break below could take the pair towards 1.6130(23.6%fib).

Recommendation: Good to sell   around 1.6200, with stop loss of 1.6260 and target price of 1.6150