• EUR/AUD slipped below 1.6500 level as euro came under selling pressure after European Central bank lowered its policy rate 25 basis points.
• The bank cut rates for the second time this cycle, lowering its key deposit rate to 3.50, as anticipated.
• ECB chief Christine Lagarde stated that the rate path was not predetermined, and that the central bank would make decisions on rates on a meeting-by-meeting basis, without any pre-commitments.
• EUR/AUD has seen a 1.6544-1.6456 range on Thursday, chart points to drop towards 1.6400 level.
• From a technical viewpoint, RSI is strongly beraish at 49, daily momentum studies, 5, 9 and 11 are trending down.
• Immediate resistance is located at 1.6546(38.2%fib), any close above will push the pair towards 1.6617(Sep 11th high)
• Support is seen at 1.6451(50%fib)and break below could take the pair towards 1.6358(61.8%fib)
Recommendation: Good to sell around 1.6480 , with stop loss of 1.6540 and target price of 1.6400
