FxWirePro: EUR/AUD outlook weaker on renewed downside pressure

• EUR/AUD dipped on Tuesday  as  the Australian dollar firmed ahead of Australia’s July CPI data.

• Headline inflation is expected to rise 3.2% year-on-year. The underlying inflation reading will be closely watched for clues on the RBA’s rate outlook.

• U.S. July PCE inflation is also due Wednesday, with headline prices expected to rise 0.1% month-on-month. The core PCE measure is expected to remain elevated at around 3.3% year-on-year, keeping the Fed’s inflation outlook in focus..

• Meanwhile, Fed Chair Kevin Warsh’s Jackson Hole speech on Friday will be closely scrutinized for signals on the timing and direction of future U.S. interest-rate moves, making it the week’s key event.

•  Immediate resistance is located at 1.6316(38.2%fib), any close above will push the pair towards 1.6365(SMA 20)

•  Support is seen at 1.6244(Lower BB)and break below could take the pair towards 1.6124(23.65fib)

Recommendation: Good to sell around 1.6360 , with stop loss of 1.6460 and target price of 1.6300