FxWirePro: EUR/ AUD downtrend loses steam, remains on bearish path

•  EUR/ AUD edged higher on Wednesday   as   investors awaited  European Central Bank rate decision on Thursday.

• The ECB is almost certain to hold rates steady, while maintaining flexibility for a September increase as a surge in energy costs threatens to push inflation higher..

•The ECB raised rates in June and hinted at more to come but a string of benign data on prices, wages, economic activity and inflation expectations in the weeks since has made a quick follow-up step less urgent.

• Financial markets are now pricing in two to three additional rate hikes, with the first fully expected by October and the second by April next year..

• Immediate resistance is located at 1.6333(Jul 22nd high), any close above will push the pair towards 1.6409(38.2% fib).

• Immediate support is seen at 1.6272(38.2% fib) and break below could take the pair towards 1.6255Lower BB).

Recommendation: Good to sell  round 1.6330, with stop loss of 1.6400 and target price of 1.6250