• EUR/AUD initially gained on Tuesday but gains faded ahead of European Central Bank rate decision on Thursday.
• European Central Bank is expected to cut its deposit rate this month by another 25 bps to 3.25%.
• Markets now attach a 93% chance of an ECB rate cut, while 70 out of 75 economists polled lean in favour of a 25 basis point cut.
• From a technical viewpoint, RSI is strongly beraish at 45, daily momentum studies, 5, 9 and 11 are trending down.
• Immediate resistance is located at 1.6272(38.2%fib), any close above will push the pair towards 1.6367(50%fib)
• Support is seen at 1.6147(23.6%fib)and break below could take the pair towards 1.6027 (Lower BB)
Recommendation: Good to sell around 1.6230 , with stop loss of 1.6340 and target price of 1.6150
