FxWirePro: EUR/AUD neutral in the near term, scope for further downside

• EUR/AUD dipped on Thursday as traders digested RBA officials latest comments on further easing.

• Reserve Bank of Australia said it will raise rates again if inflation becomes entrenched, after delivering its first hike in two years last week..

• Michele Bullock said it is unclear whether lowering inflation will require further rate hikes, adding that policymakers will closely monitor incoming data..

•  Supporting a rate hike, Wednesday’s data showed mortgage lending jumped 9.5% in Q4 and investment loans hit a record, signaling looser financial conditions than Reserve Bank of Australia.

• Immediate resistance is located at 1.6748(38.2%fib), any close above will push the pair towards 1.6981 (SMA 20)

• Support is seen at 1.6628 (23.6% fib ) and break below could take the pair towards 1.6567(Lower BB).

  Recommendation: Good to sell around 1.6760 with stop loss of 1.6700  and target price of 1.6580