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FxWirePro: EUR/AUD pauses decline as attention shifts to Fed rate decision

• EUR/AUD eased slightly on Tuesday  but downside was limited as investors were cautious ahead of Wednesday's U.S. Fed policy decision which could see it deliver a big interest rate cut.

• Markets are certain the Fed will cut rates when it makes its policy announcement on Wednesday and are leaning towards more aggressive easing in the world's biggest economy.

• On the data front, Germany’s ZEW economic sentiment index fell to its lowest level since October.

•  Technical signals are neural as RSI is  at 47, momentum studies, 5, 10 & 21 DMAs have turned flat. 

• Immediate resistance is located at 1.6526 (38.2% fib), any close above will push the pair towards 1.65788(Sep 13th high)

• Support is seen at 1.6405 (50 %fib ) and break below could take the pair towards 1.6317 (61.8% fib).

Recommendation: Be on sidelines
 

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