• EUR/AUD dipped on Thursday as investors reacted to the latest European Central Bank (ECB) interest rate decision.
• The ECB raised interest rates on Thursday as expected to curb inflation risks stemming from higher energy prices caused by the Iran conflict..
• Rising oil and gas prices pushed euro zone inflation above 3% last month, well above the ECB’s 2% target, with further increases likely as the Middle East conflict persists.
• The rate hike came as the ECB raised its 2026 inflation projection to 3.0% this year from 2.6% seen in March, and lifted the 2027 outlook to 2.3% from 2.0%..
• Immediate resistance is located at 1.6495(Higher BB), any close above will push the pair towards 1.6555(38.2%fib)
• Support is seen at 1.6369(50%fib) and break below could take the pair towards 1.6303(SMA 20).
Recommendation: Good to buy around 1.6410, with stop loss of 1.6350 and target price of 1.6500
