• EUR/AUD edged lower on Thursday as traders wound down some positions as investors focused turned to the U.S. Federal Reserve's annual Jackson Hole symposium.
• Focus will be on Fed Chair Jerome Powell's speech on Friday as traders look for hints about the likelihood of a September U.S. rate cut.
Traders had increased bets on a September rate cut after a weaker-than-expected payrolls report earlier this month and were further encouraged by consumer price data showing limited upward pressure from tariffs. However, expectations eased slightly following the release of minutes from the Fed’s July meeting.
• On the data front, Eurozone business activity picked up in August, according to PMI data, with Germany posting its fastest growth since March and France’s downturn showing signs of easing.
• Technical are favouring bullish sentiment as RSI is at 61and the pair is trading above 5,9 SMAs.
• Immediate resistance is located at 1.8166 ( Higher BB), any close above will push the pair towards 1.8297( April 4th high)
• Support is seen at 1.8015 (38.2%fib) and break below could take the pair towards 1.7895(SMA 20)
Recommendation: Good to buy 1.8000 with stop loss of 1.7900 and target price of 1.8080
