FxWirePro: EUR/AUD holds narrow range, focus on near-term support

•  EUR/AUD traded in narrow on Thursday    investors remained cautious on whether the latest developments in the Middle East would lead to a durable peace deal.

• Attention was on whether firmer evidence of progress would emerge after a series of unsuccessful negotiations..

• On monetary policy, markets are pricing in a near-certain 25 bps ECB rate hike at the June 11 meeting, with two to three hikes expected this year. 

• This follows data showing euro-area inflation rose to 3.2% in May, its highest in over two and a half years.

•  Core inflation accelerated to 2.5%, and services inflation increased to 3.5%, suggesting wider inflationary pressures outside energy. 

•  Immediate resistance is located at 1.6313(38.2%fib), any close above will push the pair towards 1.6362(Higher BB)

• Support is seen at 1.6146( Lower BB) and break below could take the pair towards 1.6111(23.6%fib).

Recommendation: Good to sell   around 1.6280, with stop loss of 1.6360 and target price of 1.6200