• 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
