• EUR/AUD fell sharply on Thursday after European Central Bank raised interest rate to record high.
• ECB raised its key interest rate to a record high of 4% on Thursday but indicated this was likely to be its final move in fight against inflation as the euro zone economy continues to stagger.
• EUR/AUD extended its drop to hit 1.6516, 1 ½ month low, it was last down 1.07% on the day.
• Technical signals are strongly bearish as RSI is at 36, daily momentum studies 5, 9 and 11 DMAs are trending south.
• Immediate resistance is located at 1.6571 (38.2% fib), any close above will push the pair towards 1.6688 (5DMA).
• Strong support is seen at 1.6515 (Daily low) and break below could take the pair towards 1.6431(61.8% fib)
Recommendation: Good to sell below 1.6530 , with stop loss of 1.6650 and target price of 1.6430
