• EUR/AUD dipped initially on Friday before paring losses as investors assessed a turbulent week of coordinated efforts by central banks to contain inflation.
• The US Federal Reserve raised interest rates this week, while the Bank of England held rates steady but warned that further tightening could be needed if the Iran war persists.
• The central banks’ decisions reinforced the view that policymakers were moving proactively to contain inflation.
• On the data front, German producer prices rose more than expected in August, rising by 4.6% on the year, the federal statistics office reported on Friday.
• Immediate resistance is located at 1.6198(38.2% fib), any close above will push the pair towards 1.6300(50% fib).
• Immediate support is seen at 1.6078(23.6%fiib) and break below could take the pair towards 1.6042(Lower BB).
Recommendation: Good to sell round 1.6150, with stop loss of 1.6230 and target price of 1.6080
