• EUR/AUD edged higher on Wednesday as investors positioned ahead of the European Central Bank's policy decision.
• The European Central Bank is expected to hike interest rates on Thursday for the second time this year, with policymakers looking to prevent the Iran war from triggering a broader energy-led inflation surge.
• The ECB is also expected to raise its growth forecasts for this year and potentially 2027 on Thursday, reflecting the resilience of the euro zone economy.
• The ECB is expected to lift its policy rate to 2.50% from 2.25% on Thursday, with economists anticipating a warning that additional hikes could follow if inflation pressures persist.
• Immediate resistance is located at 1.6197(38.2%fib), any close above will push the pair towards 1.6234(SMA 20).
• Immediate support is seen at 1.6075(23.6%fib) and break below could take the pair towards 1.6040(Lower BB)
Recommendation: Good to sell around 1.6160, with stop loss of 1.6280 and target price of 1.6100
