• EUR/AUD dipped slightly as investors absorbed comments from European Central Bank officials on the interest rate outlook.
• European Central Bank policymaker Francois Villeroy de Galhau and Greek central bank chief Yannis Stournaras argued in favor of another interest rate cut next week.
• By contrast, ECB policymaker Gabriel Makhlouf said wage growth presents upside inflation risks while policymaker Peter Kazimir said he was not convinced about the need for an Oct rate cut.
• Technical signals are slightly bullish as RSI is at 54 bullish, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.6323 (38.2%fib), any close above will push the pair towards 1.6413 (23.6%fib).
• Strong support is seen at 1.6245 (50%fib) and break below could take the pair towards 1.6183(61.8%fib).
Recommendation: Good to buy around 1.6240, with stop loss of 1.6160 and target price of 1.6340
