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• EUR/AUD dipped but losses were limited on Wednesday as investors turned cautious ahead European Central Bank's rate decision.
• Traders have priced in a 50% chance the ECB will hike rates by 25 basis points to 4% on Thursday..
• EUR/AUD has seen a 1.6789-1.6708 range on Wednesday, chart points to an drop towards 1.6600 level
• Technical signals are mixed as as RSI is bullish at 51, daily momentum studies 5, 9 and 11 DMAs are trending south.
• Immediate resistance is located at 1.6725 (5DMA), any close above will push the pair towards 1.6789 (38.2% fib).
• Strong support is seen at 1.6659 (50% fib) and break below could take the pair towards 1.6628(Lower BB )
Recommendation: Good to sell below 1.6720 , with stop loss of 1.6850 and target price of 1.6650
