• EUR/AUD edged higher on Tuesday but gains were capped as investors adopted a cautious trading approach ahead of the Federal Reserve’s latest interest rate decision.
• Market participants are holding back on large directional bets, preferring to wait for guidance from the Fed on future monetary policy, inflation trends, and the broader economic outlook.
• No change in interest rates is expected and traders will closely analyze Chair Jerome Powell’s commentary for signals on future rate cuts, inflation risks, and economic outlook.
• Technical signals are bearish as RSI is at 39, momentum studies 11,14 and 21 DMAs are trending down.
• Strong resistance is located at 1.7327(Jan 27th high), any close above will push the pair towards 1.7316 (38.2%fib)
• Immediate support is seen at 1.7115 (23.6% fib) and break below could take the pair towards 1.7050 (Lower BB).
Recommendation: Good to sell around 1.7230, with stop loss of 1.7300 and target price of 1.7160
