• 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
