• EUR/AUD recovered some ground on Wednesday as investors digested Fed rate decision.
•The Federal Reserve kept interest rates unchanged on Wednesday but warned that rising inflation and unemployment risks are darkening the U.S. economic outlook amid the impact of Trump’s tariffs.
•Following the Fed’s rate decision, Chair Jerome Powell noted that while uncertainty has dampened sentiment, the U.S. economy remains fundamentally strong.
• Technical signals are bearish as RSI is at 47, daily momentum studies 11, 14 and 21 DMAs are trending down.
•Immediate resistance is located at 1.7666 (38.2% fib), any close above will push the pair towards 1.7928 (50% fib)
• Support is seen at 1.7393 (23.6% fib) and break below could take the pair towards 1.7296(Lower BB).
Recommendation: Good to sell on rally around 1.7600, with stop loss of 1.7660 and target price of 1.7530.
