• EUR/AUD initially gained but gave up ground as the euro zone prepared for European Central Bank interest rate decision .
•Investors expect the European Central Bank on Thursday to cut the benchmark rate by 25 basis points to 3.75%.
• On the data front,HCOB's final euro zone manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 47.3 in May from April's 45.7 .
• Technical signals are bearish as RSI is lower at 44, daily momentum studies 5, 9 and 10 DMAs are trending south.
• Immediate resistance is located at 1.6338( 38.2%fib), any close above will push the pair towards 1.6391( Higher BB)
• Strong support is seen at 1.6264(23.6% fib) and break below could take the pair towards 1.6223 (Lower BB).
Recommendation: Good to sell around 1.6310, with stop loss of 1.6450and target price of 1.6230.
