FxWirePro: EUR/AUD downside pressure builds, key support level in focus

• EUR/AUD dipped  on Wednesday    as markets assessed US inflation data and  awaited Friday’s speech by Fed Chair Warsh

• U.S. PCE inflation data came in slightly above forecasts, lifting Treasury yields and providing support to the U.S. dollar.

• The euro showed limited reaction to hawkish comments from ECB policymaker Schnabel, as markets have already priced in a September rate hike.

• Market focus now turns to Friday’s speech by Fed Chair Warsh at the Kansas City Fed’s Jackson Hole Symposium, which could provide fresh clues on the outlook for U.S. monetary policy.

• Immediate resistance is located at 1.6341(SMA 20), any close above will push the pair towards 1.6354(50%fib)

• Support is seen at 1.6211(Lower BB)and break below could take the pair towards 1.6121(23.6%fib)

Recommendation: Good to sell around 1.6270 , with stop loss of 1.6360 and target price of 1.6210