• EUR/AUD slipped loweron Thursday as the Australian dollar benefited from growing expectations of a hawkish RBA stance following Wednesday’s stronger inflation figures.
• Data from the Australian Bureau of Statistics showed the monthly CPI rose 1.0% in July from June, above the 0.8% forecast, as fuel prices surged 7.5% after declining for three consecutive months.
• Hotter-than-expected inflation has boosted expectations of an RBA rate hike as early as September.
• Meanwhile, Fed Chair Kevin Warsh’s Jackson Hole speech on Friday will be closely watched for clues on the timing and direction of future U.S. interest-rate moves, making it the week’s key event.
• Immediate resistance is located at 1.6250(38.2%fib), any close above will push the pair towards 1.6322(SMA20).
• Immediate support is seen at 1.6184(Lower BB) and break below could take the pair towards 1.6119(23.6%fib%).
Recommendation: Good to sell around 1.6200, with stop loss of 1.6280 and target price of 1.6120
